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

The main difference between a bank and a credit union is in who owns them. Banks are owned by shareholders, which means their profits are generated by investors and go back to those same investors. Credit unions, on the other hand, are owned by the members who use them. Profits generated by the credit union are then reinvested back into the credit union or used to benefit members in other ways. Another difference between banks and credit unions is the types of services they offer. Banks typically offer more services such as investments and loans than credit unions. Credit unions, however, may offer higher interest rates on savings accounts and charge lower fees than banks. Banks also often require higher minimum balance requirements for their services than credit unions. Furthermore, credit unions usually require members to meet certain criteria in order to join, such as belonging to a certain organization or living in a designated geographical area. Banks, on the other hand, are usually open to anyone. In Georgia, banks are regulated by the Federal Deposit Insurance Corporation and the Georgia Department of Banking and Finance, while credit unions are regulated by the National Credit Union Administration and the Georgia Department of Banking and Finance. In both cases, depositors’ funds are insured up to $250,000 per account. Therefore, it is important to choose the right financial institution for your needs to ensure your funds are safe.

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