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Credit Unions vs. Banks

If it weren't for credit unions, all consumers - not just credit union members - would pay higher fees and receive lower dividends on their savings. Credit unions, and the competition they provide, keep banks in check for the good of all consumers.

 
Credit Unions Banks
Not-for-profit Profit-driven
Owned by their members Owned by a few stockholders
Earnings are returned to members in the form of lower loan rates, higher interest rates on deposits, and lower fees Earnings are returned to stockholders
Governed by a volunteer board of directors elected by the membership Governed by a compensated board, typically made up of those who own the majority of the stock
Only serve those within their field of membership Can serve anyone, regardless of where they live or work
Are federally insured by the National Credit Union Administration (NCUA) or a private insurer Are federally insured by the Federal Deposit Insurance Corporation (FDIC)
The bottom line: Credit unions exist to serve members whereas banks exist to make money for stockholders.