Whats the difference between a bank and a credit union?
A bank is a for-profit organization that reports to shareholders. Banks hold deposits, make loans, pay checks, and provide other related services for the public. They collect funds from three sources: demand, savings, and time deposits; short-term borrowings from other banks; and equity capital. A credit union is a not-for-profit financial cooperative owned by its members. Credit unions hold deposits, make loans, pay checks and provide other consumer banking services to individuals sharing a common bond or affiliation (in our case — those who live, work, worship or attend school in Dutchess, Orange or Ulster County). Because credit unions operate as not-for-profit institutions, they are exempt from both federal and local taxes. A credit union gets its operating funds from shares purchased by individual owners, who are members. It also pays dividends (representing the payment of interest) out of earnings.
