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Credit Unions vs. Banks: What’s the Diff?
If you’ve only ever used banks, you might not know the difference between credit unions and banks. Or you might not think there is much of a difference… but there most certainly is, and we’re here to help you UNcover the truth.
To Own or Be Owned
Credit Unions: Credit unions are member-owned, which means you’re not just a person with an account—you’re a partial owner! Credit unions make decisions driven by the best interests of their members. UNlike banks, there are no shareholders involved so you can rest assured there’s no secret agenda or ulterior motives. Plus, credit unions are not-for-profit organizations.
Banks: Because banks are for-profit corporations, there are shareholders involved. That means people you’ve never met call the shots and make decisions involving your money. Relationships at a bank are more transactional, driven by their need to generate profits. UNlike a credit union, you have no ownership within a bank.
A Personal Touch
Credit Unions: Personalized service is the name of the game at credit unions. They are often smaller and more community focused, allowing for authentic, in-person connections with real people. Building relationships and providing UNmatched member experiences matters more than numbers and transactions.
Banks: Larger in scale, banks often lack the personal touch that credit unions are known for. Getting into a relationship with a bank over a credit union is like going on blind dates over and over again—you never really know what you’re going to get.
Would you rather hang out with a nameless, faceless employee at some big business or with a friendly, UNapologetically local person who might even be your neighbor?
Oh Jeez, Here Come the Fees
Credit Unions: Known for no (or low) fees, credit unions like to avoid extra charges just as much as you do! Because there are no shareholders to impress, there’s fewer fees eating away at your funds!
Banks: Overdraft charges. ATM fees. Monthly maintenance fees. Banks are notorious for their nickel-and-diming ways. Your money could be quietly disappearing from fees you didn’t even know existed.
The Choice Is Yours
If boring, meaningless interactions with customer services reps are your thing, a bank might be best for you. However, if you want personable service and real people in your corner, it’s time to try a credit union!
At Community Choice, we pride ourselves on being able to provide UNexpectedly delightful experiences for our members every time. You can expect VIP treatment from a team of UNbankers who work for and care about you. Plus, you’ll have a say in your financial future as a part-owner of the credit union.
Ready to join us at Community Choice, aka the UNbank?
This blog is intended for educational purposes only. For details about specific products or services, see credit union for details. For questions about investments, please consult your financial advisor.