Credit Union Vs Banks

My name is Jared and I've worked at Credit Union and Banks. So what's actually the difference and what's the best fit for you? The biggest differences are that a credit union is a non-profit organization while a bank is for-profit institution owned by investors and are obligated to deliver a profit. A credit union is owned by its members, which is just anyone who has an account there. And any profit a credit union does make is returned to its members in the form of higher savings account rates and lower rates on loans. And because it's not designed to make a profit, a credit union can waive things like account fees and overdraft fees. A bank on the other hand is designed to make a profit. Its main goal is to generate a return for its shareholders, not its customers, which typically means higher interest rates on loans and more account fees. Credit unions typically have less locations than major banks, but credit unions are part of the co-op program, which will actually allow you to access your money at more branch locations nationally than most major banks. Because credit unions are designed to make less money, they typically have less technology than most major banks. So if you like a tech-savvy financial product, a major bank is probably the best fit for you. But if you like the idea of having lower interest rates on loans, less account fees, and a bank that's owned by you, and you don't mind having less technology, then a credit union is probably the best fit for you. Both: Money in both accounts is insured up to $250,000 per account by the FDIC or NCUA. Credit Union: Less locations. Credit Union: Less tech. So if you like a tech-savvy financial product, a major bank is probably the best fit for you. But if you like the idea of having lower interest rates on loans, less account fees, and a bank that's owned by you, and you don't mind having less technology, then a credit union is probably the best fit for you.