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

The main differences between a credit union and a bank in Nevada are the type of institution, who owns them, and how they generate profits. A bank is a financial institution owned by shareholders and primarily generates profits by charging interest on loans and various services that are offered to customers. A credit union is a cooperative, non-profit organization owned by its members. It generates profits by charging fees for services, such as ATM fees, and by offering special savings and money market accounts that have higher interest rates than traditional savings accounts. Another key difference is that credit unions are typically more involved in the local community, while banks are less so. They offer lower interest rates on loans, such as auto or home loans, since they are less focused on maximizing profits and more focused on helping their members. Credit unions also offer services that are tailored to their members, such as lower fees, higher deposit rates, special promotions, free checking, and more. In Nevada, both credit unions and banks are regulated by the Financial Institutions Division of the Nevada Department of Business and Industry. Both types of institutions must adhere to state banking law requirements, including licensing requirements, consumer protection regulations, capital requirements, and more.

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

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