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Member and QB David Garrard shares how credit unions differ from banks. ©®
Why Join a Credit Union?
How are Credit Unions different from Banks?
Credit unions are cooperatives — not-for-profit financial institutions chartered by the state or federal government. They are owned and controlled by their members, and organized to promote thrift and provide credit to those who belong.
Credit unions only serve members in the fields of membership - usually associations, employee groups, or communities named in their charters. As not-for-profit financial services cooperatives, credit unions return earnings to their members in higher savings rates, better services, and lower borrowing rates, while the boards of directors are volunteers elected by members.
Banks (or Savings and Loans) are financial institutions chartered by the state or federal government, which accept deposits and makes loans for a profit. They are owned by groups of stockholders whose main interest is to earn a healthy return on their investments. In contrast, credit unions exist to serve their member-owners, the people who save and borrow there.
