Why are credit unions able to give higher interest rates on savings accounts than standard banks?
Typically banks are owned by stock-holders and are obligated to pay dividend to the stock holders out of the bank’s profits. Credit Unions are owned by the members and the interest paid on savings accounts essentially is the owner dividend on CU profits, so you can expect the interest paid on savings to be what commercial banks pay plus the dividends (distributed “profit”) of the operations.
