How Is a Bank Different From a Credit Union?
Structure The biggest difference between a credit union and a bank is its structure. A credit union is a non-profit cooperative owned by its members, while a bank is a for-profit privately owned or public corporation owned by private investors. In addition, the insurance fund for credit unions differs; it’s the National Credit Union Share Insurance Fund. Like FDIC-insured deposits, those insured by the NCUSIF are fully backed by the faith and credit of the U.S. government. Membership Banks are open to just about anyone, regardless of occupation or geography. But to become a member of a credit union you must have some sort of common thread that binds. That thread may be the neighborhood or region where you live, or your membership in another professional organization. For example, there are credit unions for police officers and for postal workers and their families. Function As a for-profit, banks are driven by their ability to make money. The pre-eminent function is the bottom line. On
