How do banks and credit unions differ in structure and membership?
How do they compare in rates and fees? How do they compare in market share and asset growth? What about taxes? 1. What is a credit union? Credit unions are financial institutions formed by an organized group of people with a common bond. Members of credit unions pool their assets to provide loans and other financial services to each other. Unlike banks, credit unions exist solely to serve their members; and do not have to pay dividends to an outside group of stockholders. Instead, credit union income is returned to members in the form of better rates, lower fees and innovative services. Credit unions promote the financial well-being of members, including those of modest means, through a system that is cooperative, member-owned, volunteer-directed and not-for-profit – therefore a credit union will look for ways to keep the costs as low as possible for the members while remaining competitive and safe and sound, rather than looking for ways to make a profit for stockholders. 2. How do ban
