A profound, fundamental difference exists between banks and credit unions. Although credit
unions are small compared with banks, we do have a market impact because we offer consumers an
alternative, a better choice. Listed below are just a few of these basic differences that make
credit union membership a benefit consumers should not be denied.
| Credit Unions |
Banks |
| Are owned by account holders, known as Members. |
Are owned by stockholders. |
| Are non-profit cooperatives, organized to provide financial services
for its Members. |
Are organized to earn a profit off its customers for its stockholders. |
| Profits are shared by Members through higher savings rates, lower
loan rates, and low or no fee services. |
Profits are returned to the stockholders. |
| Voluntarily reinvest in and serve their communities (please see our
Kids First Program and
Scholarship Program pages for details.) |
Congress enacted a law to force Banks to reinvest in their
communities. |
| Every Member has an equal vote in their Credit Union. |
Banks are run by the stockholders. |
| The Board of Directors are unpaid volunteers, elected by you, the Members. |
The Board of Directors are paid, and elected by stockholders. |
