Why Credit Unions?

If you’re curious about the differences between credit unions and banks, you’re not alone. The biggest difference is in their core objectives: The guiding principle of credit unions is service to their members, while banks exist to maximize profit for their stockholders.

Credit Unions v. Banks

Not-for-profit cooperativesFor-profit
Tend to pay higher interest rates, have lower loan and credit card rates, and have lower feesTend to pay lower interest rates, have higher loan and credit card rates, and have higher/more fees
Funds are insured by the NCUA up to $250,000Funds are insured by the FDIC up to $250,000
Owned by membersOwned by stockholders
Boards of Directors are democratically-elected by members; each member is entitled to one vote regardless of the amount of money they have on depositBoards of Directors are elected by stockholders only; those owning the largest number of stocks are entitled to the largest number of votes
Often have lower minimum balance requirementsOften have higher minimum balance requirements
Sometimes have defined fields of membership based on geographic location, employer, profession, educational institution, or place of worshipOpen to anyone who can meet balance requirements
Dividends issued to membersDividends issued only to stockholders