When it comes to choosing between banks and credit unions, there are many key differences in terms of ownership, interest rates, fees, customer service, coverage insurance and accessibility. First of all, the main differences between a bank and credit union are that a credit union is a non-profit institution and is owned by its members, while a bank is a for-profit institution and does not It belongs not to its members but to its shareholders. Because credit unions operate as nonprofit institutions, they may in turn offer higher interest rates on savings accounts, checking accounts, and CDs, as well as interest rates lower on loans and credit cards. Since credit unions are owned by their members, this distinction allows members to be part owners of the credit union, giving them a say in the credit union's decision. Credit unions can thus provide services tailored to the needs of their members. In contrast, because banks are for-profit institutions, they tend to have lower interest rates on savings accounts, checking accounts, and CDs, and generally have lower interest rates. high on loans and credit cards. Additionally, since banks are not owned by their members but by the company's shareholders, members therefore have no say in a bank's decisions and therefore banks cannot provide services fully adapted to the needs of their members. Then, in terms of costs. , credit unions generally have lower and lower fees than banks. Most credit unions offer free checking, withdrawals and electronic transactions and many offer checking accounts with no minimum balance and no monthly account management fees. And this net difference saves members hundreds of dollars per year in fees. In contrast, banks levy significant fees on everything from monthly maintenance fees, paper, fewer branches with shorter opening hours, and fewer 24-hour ATMs quickly accessible to their members. Credit unions also lack or have lower-quality online and mobile banking options compared to banks, making on-the-go banking somewhat complicated or non-existent. Even though credit unions fail to provide greater accessibility to their members, they are constantly improving their services and the needs of their customers in response to the recent financial crisis, in which members are switching from banks to credit unions, flooding credit unions with new members. Allow these new members to take advantage of higher interest rates on savings or checking accounts, lower interest rates on loans or credit cards, increasingly lower fees, faster, personalized customer service, insurance coverage securely provided by NCUA, member-owned institutions, and member-focused banking services.