How are credit unions different than banks?
Credit unions are actually very similar to banks; both provide checking and savings accounts and loans. The major difference is that banks are owned by shareholders and, therefore, are concerned about making a profit. On the other hand, credit unions owned by their members and are not-for-profit institutions. Because credit unions arent focused on maximizing profit and because they do not have to pay taxes, members are likely to get better interest rates on their savings and lower interest rates on loans. However, because they are owned by individual members, credit unions typically offer many more consumer-oriented products and services and are limited in what they can offer business clients. In addition, credit unions traditionally consider character and personal circumstances more thoroughly when determining interest rates on loans instead of simply basing decisions on a persons credit score, as many large banks do. This means credit unions often give higher-risk clients better opti
