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

A bank and a credit union are both financial institutions that offer customers services such as accepting deposits, making loans, and providing other financial services. However, there are some key differences between them. The most notable difference is that banks are for-profit organizations, whereas credit unions are not-for-profit. Banks are owned by outside shareholders who receive a portion of the profits from the bank. Credit unions, on the other hand, are owned by their members. They use their profits to cover operating costs and provide additional services to their members, such as lower loan rates and higher savings rates. Another difference is that banks usually offer a wide variety of services, from checking accounts and investments to mortgages and business banking. Credit unions are usually more specialized and may only offer basic banking services. Finally, the primary difference is in who can join. Banks are open to anyone, regardless of where they live, while credit unions are limited to a certain group, such as a specific company or organization. Also, credit unions usually require a membership fee, whereas banks do not. To summarize, banks and credit unions are both financial organizations that provide customers with services such as accepting deposits and making loans. However, there are some key differences between them, such as their ownership structure, the services they offer, and who is eligible to join.

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

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