Isn’t a credit union just a bank? What’s the difference?! Credit unions and banks are both places to save your money in a savings account, open up a checking account, or take out a loan. Though they have these things in common, they’re actually quite different. Check out this infographic to learn more about what distinguishes a credit union from a bank.
Credit Unions Versus Banks
What’s the Difference?
- Credit unions are owned by their members, while banks are owned and controlled by investors and stockholders.
- Credit unions are locally-based and serve the interests of their members; banks are open to the public, and serve the interests of their stockholders.
- Credit union earnings are paid back to members, in terms of higher savings rates and lower loan rates. Banks are for-profit, and earnings are only paid to stockholders.
- Taxpayer funds have never been used to bail out a credit union; taxpayer dollars have been used frequently to bail out banks.
Infographic Source: cfcu