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

The main difference between a bank and a credit union is the type of ownership. Banks are generally owned by shareholders who are in it to make a profit. Credit unions, on the other hand, are owned and operated by their members who are the customers of the credit union. Banks typically have more services than credit unions. Banks usually offer all the common banking services such as checking and savings accounts, loans, and investment options. Credit unions, on the other hand, often only offer basic services such as checking and savings accounts, and sometimes loans. Additionally, the fees and interest rates for banks and credit unions can differ as well. Banks often have higher fees and interest rates when compared to credit unions. This is because banks have shareholders to pay and need to make a profit. Credit unions on the other hand, are ran by the members and have a focus more on providing the members with lower fees and interest rates. Overall, the main difference between a bank and a credit union is the type of ownership. Banks are owned by shareholders and credit unions are owned by its members. Banks often have more services than credit unions, and usually have higher fees and interest rates.

Related FAQs

What are the general principles of banking law?
What is the Homeowner’s Protection Act?
What is the Bank Secrecy Act?
What is the Home Mortgage Disclosure Act?
What is the Truth in Lending Act?
What is the Bank Secrecy Act?
What is the Consumer Financial Protection Bureau?
What are some common banking laws?
What does a bank need to consider when making a loan?
What is a loan originator?

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

Related FAQs

Related Blog Posts