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

The difference between a credit union and a bank in Washington lies in who owns them. A bank is owned by private shareholders, while a credit union is owned by its members. This means that a credit union is a non-profit organization that operates to serve members, while a bank is owned and operated to make a profit. A credit union in Washington will often offer better rates and lower fees than a bank, but may be more restricted in their services; credit unions usually offer only basic services such as savings, checking, and loans. Banks, on the other hand, offer a wide variety of services, including investments and wealth management. Credit unions also tend to offer more personalized customer service than banks, as they are owned and managed by the people who use them. In Washington, it is important to know the laws that govern both banks and credit unions. Banks are governed by the federal government and by financial institutions such as the Federal Deposit Insurance Corporation (FDIC). Credit unions are governed by different state regulations as well as the National Credit Union Administration (NCUA). Both banks and credit unions must comply with laws and regulations that protect consumers and ensure their financial health.

Related FAQs

What are the requirements for creating a bank?
What is the Bank Secrecy Act?
What is the Electronic Funds Transfer Act?
What is the Payment Card Industry Data Security Standard?
What is the Truth in Lending Act?
What is the Bank Holding Company Act?
What is the Gramm-Leach-Bliley Act?
What is the Unlawful Internet Gambling Enforcement Act?
What is the Investment Company Act?
What is the federal Consumer Financial Protection Bureau?

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

Related FAQs

Related Blog Posts