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How is a Credit Union Different than a Bank?
June 1st, 2009 by Katie McCaskey
Ballynahinch Credit Union
Image via Wikipedia

How do credit unions and banks differ? Here are the key differences:

Credit Unions

  • Are member owned (one vote per member)
  • Not-for-profit
  • Members usually have a common bond (for example, shared employer, professional association, geographic ties, or similar)
  • Board of Directors are elected by members
  • Board of Directors are volunteers
  • Fewer to no fees

    • Banks

  • Anyone can join
  • For profit
  • Customers rather than members (no votes)
  • Board of Directors elected by stockholders
  • Board of Directors are paid
  • Stockhold owned (no votes for customers, only stockholders)
  • Fee-driven

    • Money deposited in credit union members typically stays in the local community. They are also more willing to loan smaller amounts banks feel are unprofitable. For these and other reasons there is increased interest in, and support for, credit unions. Here’s how you can find a credit union.

    Any wonder why credit unions are so popular? Share your favorite credit union. What makes it special to you?

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    This entry was posted on Monday, June 1st, 2009 at 9:00 am and is filed under Investing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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