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Banks and credit unions both offer ways to spend, save and finance, but there are a lot of great things that set credit unions apart. Learn how we’re different from banks, and how together we can save better and plan smarter.

What is a Credit Union?

A credit union is a financial institution that puts its members first. While banks and credit unions offer many of the same services, our focus is providing exceptional service to our community. We prioritize financial well-being over profit, offering personal financial guidance, educational resources, and products that are designed around your needs, not corporate gains.
If you're a credit union member, you're also a credit union owner. As a member, you play a vital role in decision-making for the credit union. Your voice truly matters because you help shape the direction and future of the credit union. This structure ensures that important decisions are made with the members' best interests in mind. As we've mentioned, we are not-for-profit, which means we offer lower fees and better rates. This also means a share of profits is returned to you. Fees are decided and made locally by you and for you, not at the hands of big shareholders. This local control helps establish fair and transparent fees that are reflective of the needs of the community. Credit unions offer similar products to banks—like checking and savings accounts, loans, and credit cards—but with lower fees and more appealing rates. As member-owned, not-for-profit institutions, we focus on personalized service, financial education, and returning value to their members through our products. 

 Credit unions offer a more personalized banking experience. As a credit union, we are built to serve our community, and not shareholders. That means lower fees, competitive interest rates, and more flexibility in lending decisions. Credit unions also operate as democracies - members vote on who serves on the board of directors, and you can even volunteer to serve yourself. We're committed to helping our members reach their financial goals, and we support that by providing countless financial education programs.

What is a Bank?

Unlike a credit union, a bank is a for-profit organization that offers similar services to a credit union, but is instead owned by shareholders. The primary goal of a bank is to generate profit for its investors, which can influence how products and services are delivered.
Since banks are for-profits, they are owned by shareholders. This means that their primary responsibility is to enhance returns for their investors. Ownership influences how banks operate, meaning decision-making tends to be driven by profitability. Bank customers do not have a direct say in bank decisions. Instead, banks are governed by a board of directors whose decisions are guided by what they think will best serve the shareholders and customers. Banks often charge a variety of fees as part of their revenue generation. These can include overdraft fees, ATM fees, minimum balance penalties, and monthly maintenance fees. As a result, traditional institutions can sometimes feel limiting or restrictive. These added costs can create less accessible banking, particularly for individuals beginning their financial journey or managing tight budgets. Banks tend to offer a wide range of financial products to add convenience to customers' banking experience. While this may create ease, the customer service may feel more transactional than personalized. Because banks tend to serve larger customer bases, the service can lack individualized experiences that are created at credit unions.

What should you choose: A Credit Union or a Bank?

When deciding between a bank or a credit union, it is crucial to determine your values, financial goals, and what kind of service you prioritize. Credit unions operate with a member-first mindset by channeling earnings back into the community through lower fees and better rates. While banks may offer a handful of different products, credit unions focus on quality over quantity, ensuring that exceptional services and favorable financial help is received by members.
To summarize, the main difference between a credit union and a bank lies in the structure and purpose of the financial institution. Banks are for-profit, owned by shareholders, and their primary goal is to generate revenue. Credit unions are member-owned, not-for-profit, and community focused institutions that demonstrate dedication to member needs over profits.