What's the difference between credit union and banks?

Question

What's the difference between credit union and banks?

Answer 1

A federal bank is regulated under federal guidelines and government operated while a credit union is typically private and member owned.

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!

P.S.  The answer "A federal bank is regulated under federal guidelines and government operated while a credit union is typically private and member owned" is somewhat mistaken.  In the U.S., the government does not operate banks (with the exception of the Federal Reserve Bank, which is quasi-public--see Wikipedia for more info).  Also, some credit unions are regulated under federal guidelines (those that are "federal credit unions"), while the rest are regulated by the state in which the institution is headquartered.  Credit unions are insured and backed by the US Government by an agency called the National Credit Union Administration (NCUA) which is similar to the FDIC insurance fund for banks, so your money will be safe.

Answer 3

There is a big difference in the fees you will pay.

A credit union is there to benefit the members and is NON profit.

A bank is there to benefit shareholders and will nickle and dime you to death to make money.

Hope this helps.