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

The primary difference between a credit union and a bank is the type of ownership structure. Credit unions are owned and operated by their members, who are also known as shareholders. Banks, on the other hand, are owned and operated by private individuals or corporations. The purpose of a credit union is to serve the financial needs of its members and to promote the economic wellbeing of its members. Credit unions offer a range of services, including savings and checking accounts, loans, investments, payment services, and insurance products. The members of a credit union generally have something in common, such as the same employer or common cultural heritage. Banks provide similar services to credit unions but are much larger and have more options. Banks are for-profit businesses, so their primary purpose is to generate revenue for their shareholders. Banks offer more financial services, such as credit cards and international banking services. Banks also have access to a wider variety of sources of capital, which enables them to provide larger loans and investments than credit unions. There are significant differences between credit unions and banks. Generally speaking, credit unions offer more personalized services, lower interest rates, and fewer fees than banks. Banks, on the other hand, offer more services and products, have larger networks, and generate higher profits for their shareholders.

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