Differences of Banks and Credit Unions

Before you decide on where to do your banking, it’s important to understand the differences between a credit union and a traditional bank. Both types of financial institutions typically offer many of the same products and services — however, each uses a different business model. If you want to learn about both banks and credit unions so you can choose between them, here are a few ways these institutions differ.

Additionally, credit unions operate to promote the well-being of their members. Profits made by the organization are returned to members in the form of lower interest rates for loans, reduced fees and higher interest rates for savings. Credit unions also are known for excelling at customer service due to their nonprofit status. 

Taking these factors into consideration can help you decide which type of financial institution can best serve your needs. For more information on the fundamental differences between credit unions and banks, see the accompanying infographic.

The Credit Union Advantage from Pacific Service Credit Union.

Author bio: Vice President of Marketing Kristin Dove has over 28 years of marketing experience with Pacific Service Credit Union. Dove provides credibility in the ever-changing world of marketing. She has a B.A. in Information and Communication Studies from California State University, Chico, has won numerous awards for her work, and served on many industry councils.