Banks vs Credit Unions

When you want to get the lowest rate on the money you borrow and the highest rate on the money you save, where do you go? Bank? Credit Union? Online? Let's find out.

Category:

News & Politics

Tags:

• bank
• money
• finance
• credit
• union
• save

[mccabe1958]

Non-profit is NOT the same as a charitable organization. Banks and credit unions pay taxes. Credit unions do not pay federal income taxes, as a non-profit but do pay many, many other state, federal, property and local taxes. Banks operate with the goal of making a profit for their stock holders. In credit unions the members are the "stock holders" and they realize the benefits for the non-profit status.

[afroshaolin]

I LOVE my credit union. I prefer it MUCH more than my bank. Better customer service, lower interest rates, low if any service fees, and even gifts on occasion (and not some lame offer) But I have to say that access to my account through the bank is much more convenient. Branches aren't everywhere like banks are:( . Wish CU's had that much spending power.

[benyehmine]

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[JJNoire]

I agree with Afroshaolin. Between my housing cooperative & personal banking, I deal with three different credit unions. Over the years I've had accounts with many of the main banking players. For customer service, a good deal and (let's not forget) reinvesting in one's own community, credit unions are the best! Love them!

[moneywealthwisdom]

Great video for the basics on banks and credit unions. Remember the banks have no loyalty to you just the shareholders. Six more banks were closed today by the FDIC in Georgia, Florida, Minnesota and Arkansas. Protect yourself and shop around.

[lossmoneyontimeshare]

thanks

[unytcommsys]

@betsall You go to public high schools to pass tests.

[rahlgren]

Amazing. Some of these comments make it sound like a CU is a socialist operation.

It's simple.

Banks are owned by stockholders, who profit from depositors and borrowers. The profits are distributed to the stockholders as dividends and executives as bonuses.

CUs are owned by its members, otherwise known as depositors and borrowers. The profits are redistributed to the members in the form of higher rates on savings, and lower rates on loans, not to mention lower fees on everything else.

[claudevandog]

If you want to see just how evil the big banks are, watch Cashtub.

[CarlBigA007]

The only time I would use a bank is to get a lower rate on a loan if and when offered, but other then the once in a while loan offers a Credit Union can beat out a bank on anything. My Credit Cards have 9% interest. Tell me what Bank offer Visa or Master Card at 9% and my credit score is not the best. All I can say is shop around and compare for yourself. If your local Credit Union can not beat out your local bank on rates of most general services you must live in the sticks(MAYBE ALASKA).