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

In Oregon, the difference between a credit union and a bank is not always clear. Both institutions are financial institutions that allow customers to make deposits and withdrawals, open lines of credit, and even receive loans. However, there are a few key differences that set the two apart. Credit unions are not-for-profit organizations that are owned by their members, who will typically be in a certain geographic region or have a common bond, like their job or school. On the other hand, banks are funded and owned by shareholders and generally serve a wider customer base. In addition, credit unions tend to offer lower fees than banks. This could be because their profits are redistributed to members in a variety of ways, such as better interest rates. Banks tend to offer more services than credit unions, like investment and wealth management services. Finally, credit unions are regulated by the National Credit Union Administration, while banks are regulated by the Federal Reserve. These two agencies have different rules and regulations, so make sure to look closely at the terms and conditions of your institution to ensure that you are getting the best deals and services.

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