What is the difference between a bank and a credit union?

The key difference between a bank and a credit union is that a bank is a for-profit institution while a credit union is a non-profit institution. Banks typically generate profits by investing customers’ deposits and by charging interest and fees on loans, services, and products. Credit unions are owned and governed by their members and typically focus on providing a safe place for their members to save and borrow money. In California, banks and credit unions both must follow state banking law. Banks and credit unions are both subject to the same federal deposit insurance offered through the Federal Deposit Insurance Corporation (FDIC). However, credit unions are also insured by the National Credit Union Administration (NCUA) and have additional requirements, such as participation in programs to help their members better manage their finances. Banks usually offer a wider range of services and products such as investments, trust services, credit cards, and more. Credit unions usually have limited services and products but they usually offer lower loan and savings rates. Credit unions also often offer no or low-cost services such as checking accounts, debit cards, and money orders. Some credit unions offer credit cards with no annual fee and lower interest rates than those offered by banks. All in all, the main difference between a bank and a credit union is that a bank is a for-profit institution and a credit union is a non-profit institution. Banks and credit unions in California are both subject to state banking law, but credit unions also have additional requirements and often offer lower loan and savings rates. Banks tend to offer a wider range of services and products, while credit unions usually offer fewer services and fewer products but often with no or lower costs.

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What is the difference between a bank and a credit union?

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