Banks Vs. Credit Unions: Who Ya Got?

Credit Unions are just banks, right? Well… kind of… Maybe if you squint and turn your head sideways a bit. All kidding aside, they are different, but they’re also more similar than you might think.

 

Here’s Five Fast Facts about Banks and Credit Unions:

  1. 🏦 Ownership - Banks are owned by investors and are for-profit. Credit unions are owned by their members and aren’t interested (heh) in profit. Credit Unions focus on keeping fees low and interest rates for savings accounts high. Credit Union members have the ability to vote on policy, too!

  1. 👐 Membership - If you have a pulse you can basically open an account at most banks. Credit unions, on the other hand, limit their membership to specific geographic areas, businesses, school districts, etc. So, f you don’t meet the requirements, no soup for you. 

  1. 💳 Services - Credit unions have fewer options to choose from as far as products and services, including investment opportunities. In other words, Credit unions usually only have checking and savings accounts and usually a single credit card.

  1. 📱 Technology - Since most credit unions are local, they don’t necessarily have the high-tech knowhow that is usually at the fingertips for the giant national banks. Online banking may be a possibility, but an app is probably not within their capabilities.

  1. 🏧 Location - Most banks have multiple branches and ATMs, making it easy to stop by whenever convenient. Credit unions, however, are limited to one or two locations. So you may have to go out of the way if you need to stop and visit.

🔥Bottom line: The debate comes down to convenience and availability. Most people are willing to look past better interest rates in favor of the opportunity to hit a branch or an ATM on the way home. Or to deposit a check from their phone.

Do you belong to a credit union?

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