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Credit Union versus a Bank
September 17, 2008
Credit unions are cooperative financial institutions, owned and controlled by the people who use its services. Credit unions are not-for-profit, and traditionally provide fewer fees, better service and lower rates on loans.
Once you deposit money into a credit union, you become a member and a shareholder. The independent nature of a cooperative financial institution allows all members to have an equal voice in the operation of the organization.
You may be wondering what the difference is between credit unions and banks. While they both accept deposits, make loans and have other similarities, credit unions have one fundamental difference: they do not profit off of their members. Banks are owned by groups of stockholders and operated by paid boards of directors. Credit unions are owned by their members and are operated by volunteer boards of directors.
Deposits made by credit union members are insured by the National Credit Union Administration up to $100,000.
Posted by Shanu Singh Guliani on September 17, 2008 | Comments (1)
