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

The main difference between a credit union and a bank in Texas is how they are set up. Banks in Texas are for-profit businesses owned by shareholders whose primary goal is to make a profit for their owners. On the other hand, credit unions in Texas are not-for-profit cooperatives and are owned by their members, meaning that their primary goal is to help their members. Another important difference between a credit union and a bank is the types of services they both offer. Banks provide a variety of services like checking and savings accounts, loan services, and investment services. Credit unions, however, generally only offer basic banking services such as savings and checking accounts, and sometimes loans. Credit unions also tend to offer lower fees, lower loan rates, and better customer service than banks. Lastly, credit unions in Texas have to adhere to different regulations than those of banks. Credit unions are regulated by the National Credit Union Association (NCUA) and the Texas Credit Union Department, while banks in Texas are regulated by the Federal Deposit Insurance Corporation (FDIC). In summary, the main differences between a credit union and a bank in Texas are their setup, services offered, fees, loan rates, customer service, and regulations. Credit unions are generally better for those looking for basic banking services while banks have more services and higher fees.

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