Credit Unions vs Banks
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Difference Between Credit Unions & Banks
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Credit Unions
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Banks
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Not-for-profit, but for service.
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Profit-motivated
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Profits returned to members through lower loan rates, higher deposit rates & lower/fewer fees
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Return profits to a small group of stockholders
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Serves a field of membership (FRFCU serves Bon Homme, Brule, Charles Mix, Douglas, Gregory & Hutchinson Counties)
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Serves the general public
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Member-owned
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Controlled by stockholders and paid officials
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Federally insured by the National Credit Union Administration (NCUA)
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Federally insured by the Federal Deposit Insurance Corporation (FDIC)
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Volunteer, member-elected Board of Directors
(One member = One vote)
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Paid Board of Directors represents owners; Only stockholders vote. Number of votes a stockholder gets is dependent on their level of ownership
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The Credit Union Difference
A credit union is a cooperative, not-for-profit financial institution chartered by the state or federal government. It is member-owned and controlled by its members through a board of directors elected by the membership. The board serves on a volunteer basis to establish and revise policies, set dividend and loan rates, and direct certain operations. The result: Members are provided with a safe, convenient place to save and borrow at reasonable rates.