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

The primary difference between a bank and a credit union is ownership. Banks are typically owned by individuals or companies, and they are for-profit entities. Credit unions, on the other hand, are owned by their members, and they are not-for-profit entities. A second difference is the types of services offered. Banks usually offer a wide range of services including checking and savings accounts, mortgage loans, business banking, and more. Credit Unions usually offer similar services, but tend to be more specialized. For example, some credit unions offer only car loan services. A third difference is the interest rates charged. Banks typically offer higher interest rates on their services because they are for-profit entities. Credit unions usually offer lower interest rates because they are not-for-profit entities and they are committed to providing their members with the best service. In Delaware, banks and credit unions are both regulated by the state’s banking division. The banking division ensures that banks and credit unions are compliant with the applicable laws and regulations, and that they are meeting their obligation to serve the public’s financial needs in a fair and secure manner.

Related FAQs

What are the general principles of banking law?
What is the Electronic Funds Transfer Act?
What is the Electronic Signatures in Global and National Commerce Act?
What is the Debt Collection Improvement Act?
What legal issues do banks face?
What are the U.S. banking laws?
What is the Home Affordable Modification Program?
What is the Monetary Control Act?
What is the National Bank Act?
What is the Fair Debt Collection Practices Act?

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

Related FAQs

Related Blog Posts