The good news is there are enough differences between the two to tell them apart. Who owns it. Banks are for-profit and want to make money. Who can join it. Anybody with money can open an account at a bank. But with a credit union, you have to qualify for membership—even if you have a bucketload of cash.
And nobody likes fees. Who backs it. You want a bank or credit union to be insured against loss or theft of any kind. But both are government-backed agencies that will protect your cash—the only time Uncle Sam actually puts money into your pocket.
The fees it charges. Since banks must make money for their investors, they often charge higher fees and more fees than credit unions. Call a corporate bank with a simple request, like checking the balance of a savings account. Count the number of irritating phone tree menus you have to sift through before you could talk to a real person who could answer your question.
You win when you get frustrated and slam the phone down in anger! For-profit banks have earned a reputation for cumbersome customer service and out-of-touch policies. Getting information on financial services, like credit repair or auto loans, means sitting on hold for hours. Credit unions, on the other hand, provide easy-to-use services and real, live human beings who can answer questions, make recommendations and help you understand the complicated world of finance. For-profit banks answer to corporate owners.
They expect a predictable, stable rate of return on their investments. This demand puts a straitjacket on lending and ensures those practices never deviate from a predetermined formula. Credit history ruined by an old medical bill?
Corporate banks stop reading after the first three words of that sentence. Credit unions are community institutions, so helping people out is part of what they do. Credit union members get to vote on policies and decisions made by the financial institution. Most credit unions cannot compete with banks when it comes to convenience access to ATMs and branches and technology like mobile banking. Many credit unions cannot compete with online banks in terms of technology.
Credit unions may offer lower interest rates on loans, but the array of financial products may be limited in scope compared to big banks. Credit unions will likely offer you lower-cost services and better interest rate options for both loans and deposits. Banks will likely provide more services and products, as well as more advanced technologies. You'll need to take factors like these into consideration in deciding which type of institution will best serve your needs.
Credit Union National Association. National Credit Union Administration. National Credit Union Association. Office of Attorney General, Commonwealth of Pennsylvania. Connexus Credit Union. Federal Deposit Insurance Corporation. Company Profiles. Checking Accounts.
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List of Partners vendors. Your Money. Personal Finance. Your Practice. Popular Courses. While a bank can be part of the community, a credit union like Wailuku Federal Credit Union is the community. The people of Wailuku are its members and its voice. This gives them a direct say in their own financial prosperity and allows them to better impact the place and people they call home. Online Banking Not Enrolled? Forgot Password? In addition, many credit unions, such as Wailuku Federal Credit Union, serve a specific geographic region.
Wailuku Federal Credit Union's " field of membership " includes those who live, work, worship, or attend school in Wailuku, as well as their immediate families. Credit Unions Can Offer More Personalized Service Since credit unions focus their services on a specific community, and are often headquartered locally, they can offer more personalized service.
For example, Wailuku Federal Credit Union's employees are recognizable to their members.
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