What Sets a Credit Union Apart From a Bank?
The Answer is Always Members
People often get confused about the differences between a Credit Union and a traditional bank since they seem to perform so many of the same functions. However, the differences between the two are important to note and more importantly, could save you money in the long run!
1. Credit Unions are not-for-profit which means any profits made are returned to members via lower fees, higher savings rates, and lower loan rates. Banks are for profit with earnings paid to stockholders.
2. Credit Unions are cooperative, meaning they are member-owned with each member has an equal vote to elect board members. Banks are owned by stockholders and their votes are dependent upon the number of shares they own.
3. Credit Union boards are made up of volunteers who reflect the membership. Bank board members are paid for their work.
4. Credit Unions are often local and organized to serve the specialized interests of its members. Banks are open to the general public.
5. Credit Unions focus on consumer loans, member savings, and services needed by members. Banks focus on commercial accounts, loans, and services that generate income.
6. Credit Unions focus on members and providing excellent customer service including low rates and fees. Often a small Credit Union branch will have tellers who know their customers on sight. Banks try to make as much profit as possible often through higher rates and fees. In the pursuit of profit, lines at the bank can be long and tellers impersonal.
7. Credit Unions are more flexible and understanding when it comes to a challenged financial or employment history due to their liaisons with unions and trade groups. Banks have corporate policies that are unbending and denials of a loan or credit card to an individual means li le among thousands of applications.
8. Credit Unions cooperate with other Credit Unions, often sharing resources including the CO-OP ATM Network to make services more convenient for members. Banks compete with one another and have no incentive to cooperate.
9. Credit Union deposits are federally insured up to $250,000 by the National Credit Union Administra on. Banks deposits are insured up to $250,000 by the Federal Deposit Insurance Corpora on.
10. Credit Unions have close ties to the community they serve and strive to give back to those communities. Banks are owned by national or multi-national interests with no ties to small communities.
Still have a loan or an account with a bank?
We can help you move them over to your credit union to ensure you get all the perks of being in the Ironworkers CU brotherhood.
Stop by a branch or call us at 1-877-769-4766.