Credit Unions vs Banks

Difference Between Credit Unions & Banks

Credit Unions


Not-for-profit, but for service.


Profits returned to members through lower loan rates, higher deposit rates & lower/fewer fees

Return profits to a small group of stockholders

Serves a field of membership (FRFCU serves Bon Homme, Brule, Charles Mix, Douglas, Gregory & Hutchinson Counties)

Serves the general public


Controlled by stockholders and paid officials

Federally insured by the National Credit Union Administration (NCUA)

Federally insured by the Federal Deposit Insurance Corporation (FDIC)

Volunteer, member-elected Board of Directors

(One member = One vote)

Paid Board of Directors represents owners; Only stockholders vote. Number of votes a stockholder gets is dependent on their level of ownership

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.