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

The main difference between a bank and a credit union is that banks are for-profit businesses, meaning that they are designed to make money for their owners. On the other hand, credit unions are not-for-profit organizations that are owned by their members and managed by a volunteer board of directors. Banks are subject to the regulations of the FDIC (Federal Deposit Insurance Corporation) and are regulated by the Oklahoma Banking Department. On the other hand, credit unions are regulated by the National Credit Union Administration (NCUA). In terms of services, banks often offer traditional banking services, such as checking and savings accounts, loans, credit cards, mortgages, and investments. Banks may also offer additional services, such as online banking and mobile banking. Credit unions normally offer the same services as banks, but may also provide unique services to members, such as lower interest rates on loans and better savings and checking account rates. In terms of eligibility, banks typically require customers to possess a certain amount of money or meet certain financial requirements, such as having a minimum balance in a bank account. Credit unions, however, are normally open to anyone who lives or works in the local area or belongs to a certain group, such as a labor union or religious organization. Overall, the main difference between banks and credit unions is the type of ownership and the services that they offer. Banks are for-profit businesses that are overseen by the FDIC, while credit unions are not-for-profit organizations that are overseen by the NCUA. Banks may provide a wider range of services, but credit unions may offer lower rates and better services for members.

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