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

The primary difference between a credit union and a bank is in the structure of ownership. Credit unions are often viewed as non-profit organizations because they are owned by their members. This means that when a person deposits money into a credit union they are not just customers, but rather part-owners of the organization. As part-owners, the members of a credit union are able to vote on issues related to the organization and share in its profits. On the other hand, banks are traditionally for-profit corporations that are owned by stockholders. Although the customer deposits money into the bank, they are not part-owners and therefore do not have the same rights or privileges as members of the credit union. Additionally, the profits made by the bank are used to benefit its stockholders, not the customers. In South Carolina, both credit unions and banks are regulated by the South Carolina Department of Consumer Affairs and are subject to the same consumer protection laws. Banks and credit unions must also adhere to the State Banking Law, which requires both entities to provide customers with deposit and lending services, as well as ensure their financial solvency.

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

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