Credit Unions and banks. Banks and credit unions. To many, there doesn’t seem to be much of a difference. Both are financial institutions that hold or lend you money. Well, in fact, there IS a difference. Actually, there are several differences.
Credit unions are owned by their members. This means that every member owns one share of the institution. They have a vote in the decisions made such as the election of members to serve on the board of directors. Credit unions are also non-profit. Any profits made are put back into the credit union in the form of discounted loan rates, dividends, and other member benefits. Credit unions exist to serve their members, and they only exist because of their members. Here is a great interactive site from NCUA (our governing agency) with more info.
Banks, on the other hand, are for-profit financial institutions that are owned by stockholders. These owners are financially invested and intend to make money on their investment. Profits are paid out to stockholders. Account holders do not have a voice in the decisions.
Now that you know a little more about the differences in credit unions and banks, doesn’t it seem like an easy decision? Put your money in the hands of someone you trust, someone that exists to serve you.