Credit Union vs. Bank?

Question

I'm going to be a freshman at college this year, and now I'm finally getting to choose a banking situation for myself (separate from my parents), and there's so many choices! But one of the major differences I've noticed is the choice between a Credit Union and your standard bank! What's the difference? Would one be better for me as a college student than the other? I don't need to take out college loans right now, but for regular checking and saving needs... Which is better?

Answer 1

Generally, a credit union is better because they pay higher rates of interest for savings accounts and charge lower rates of interest for loans.

The main drawback is there are not a lot of locations.  So, during summer breaks and after you graduate, there will not be an accessible location for you to access your money without paying ATM fees assuming that you get a debit card.

Answer 2

Credit unions are financial institutions, like banks. They offer many of the same products and services -- savings accounts, checking accounts, ATM/debit cards, credit cards, auto loans, mortgages, home equity loans, etc. The main difference from your viewpoint as a consumer is that you can become a customer of any bank, while credit unions can only serve people who fit in their "Field of Membership." Some credit unions are sponsored by a company and only the employees can join. There are numerous credit unions that have "community charters" which allow them to serve people who live within a defined geographic region (i.e. city, county, zip codes, etc.).

The best place to find a credit union that you can join is using the following website: http://www.creditunion.coop/cu_locator/i...

Hope this helps. Good luck!