What are the distinctive differences between banks and credit unions?
That is a good question because, obviously, we offer similar products such as deposit accounts and loan products. What really makes us different is our structure. Credit unions are not-for-profit financial institutions. We exist solely to service our members, not to make a profit. We don’t issue stocks and we don’t have stockholders to whom we have to pay a dividend. That’s the biggest difference. Another difference is that our board is made up of volunteers and our membership is made up of the members and owners of the credit union. They vote for the board of directors and have a very clear voice in how the credit union is operated and what kind of service we provide for the members. It is a democratically owned cooperative. And in some banks, obviously, when you are a very large customer, you have more influence than the smaller depositor. With credit unions, all members are created equal; whether you have $5 or $5,000, you have one voice and one vote. What makes good credit unions s
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