Credit Union Vs. a Bank: The CU Difference!
You may have heard about credit unions, but do not have a clue about the difference between a credit union and a bank. See the side-by-side comparison below. Based on the information, see what financial institution is the best fit for your life style.
Credit Union: (Noun) A not-for-profit financial institution that gives profit made back to members via lower interest rates on loans, higher interest on dividends, and more free products and services.
|Not-for-profit cooperatives||Institutions run for profit|
|Return earnings to members through lower loan rates, higher savings rates and free or low-cost services||Return profits to a small group of stockholders at the expense of their customers|
|Make loans only to their members, which both serves their membership and assures that capital remains within the community||Often makes loans to outside borrowers, including foreign countries and commercial enterprises|
|Have member/owners-each person who deposits money has a share of the ownership||Customers have no rights of ownership|
|Board of Directors is elected by the membership||Customers have no voting privileges|
|Have a volunteer Board of Directors that serves for no compensation||Have a paid Board of Directors that serves for financial gain|
|Can serve only those individuals within their field of membership||Can serve anyone in the general public|
|Are service driven and people focused||Are credit driven and profit focused|
|Believe competition benefits all consumers||Try to eliminate competition through legislation and lawsuits|
Still have questions? See our frequently asked questions to answer potential questions you may have about credit unions and what we can do for you! Feel free to call us at 337-232-8450.
How to join? See the process of joining a credit union here.
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