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

The primary difference between a bank and a credit union is the ownership structure. Banks are investor-owned, meaning they are owned by stockholders who buy shares of the bank. Credit unions, on the other hand, are owned by their members, who are the people using the services the credit union provides. Another key difference between a bank and a credit union is the way in which they generate profits. Banks make money by charging loan and service fees, collecting interest on deposits and investments, and offering financial services to customers. Credit unions, however, are not-for-profit organizations that use the profits they earn from providing services to their members to reduce fees and interest rates. In addition, banks and credit unions are also subject to different regulations. Banks are regulated by the Federal Deposit Insurance Corporation (FDIC) and the Oregon Division of Financial Regulation, while credit unions are regulated by the National Credit Union Administration (NCUA) and the Oregon Department of Consumer and Business Services. Finally, banks and credit unions also have different levels of customer service. Banks often have larger staffs and longer hours to offer convenient services, while credit unions typically have fewer branches and a smaller staff. Credit unions, however, are often more willing to take extra steps to help their members, such as providing no-fee and reduced-rate loans.

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