What are the Key Differences Between Credit Unions and Banks?
| Credit Unions | Banks |
|---|
| Are not-for-profit institutions |
Are profit-oriented institutions |
| Can serve only those individuals within their field of membership |
Can serve anyone in the general public |
| Have members, each person who deposits money has a share of ownership |
Have customers with no ownership in the organization |
| Members elect a volunteer Board of Directors to represent their interests |
Have a paid Board of Directors who represent the owners; customers do not have voting privileges |
| Democratically controlled by members |
Controlled by stockholders and paid officials |
| Are member service-driven |
Are profit-driven |
| Return profits to members in the form of lower loan rates, higher savings rates and free or low cost services. |
Return profits to a small group of stockholders |
| Are federally insured by the National Credit Union Administration |
Are federally insured by the Federal Deposit Insurance Corporation |