What Is The Difference Between Banks And Credit Unions

Banks and credit unions are both financial institutions, but there are key differences between them. Banks are typically for-profit entities owned by shareholders and credit unions are non-profit organizations owned by their members. Banks offer a wide range of services, such as savings and checking accounts, mortgages, personal loans, credit cards, and investments. Credit unions offer similar services, but they are typically on a smaller scale and with fewer fees. Banks tend to have higher interest rates on loans and deposits, while credit unions have lower fees. Banks also have more branches, ATMs, and online services than credit unions. Additionally, credit unions have more stringent membership requirements than banks do.