Credit Union vs Bank
We all know about banks as we have been to banks ever since we were small kids with our parents and then when we grew up and opened our own savings accounts. We know a little bit about credit unions also; they are financial institutions that work along similar lines and one can have an account there and also avail a loan from a credit union. With so many similarities, just what are the differences between these two financial institutions? This article will highlight these differences to enable one to choose either of the two depending upon his requirements.
While a bank may be privately owned or a government owned financial institution, a credit union is always a not for profit institution that is owned by its members. The members are people belonging to the same church, school, organization or community. If you are a member of a credit union, you know how much better personal experience in a credit union is compared to a bank. May be this has to do with your ownership in the credit union. It suits the interests of a credit union to keep members happy. The same cannot be said about banks though as they have a larger customer base and cannot remember many of their customers. It is no surprise then that credit unions have been topping in customer satisfaction surveys for more than a decade now. Credit unions are more concerned with helping out their member rather than making a profit. This is why the advice about various financial products coming from a credit union is much more transparent and genuine than the advice coming from your bank, which has the sole motive of making profits from you.
如前所述,信用合作社不适合利润组织,这就是为什么他们不必支付银行应缴纳的许多州和联邦税。除了高运营费用外,他们也没有高薪高管。这些优势使信用合作社可以在节省账户和各种贷款的利率下提供更高的利率。对延迟付款和透支的处罚也大大低于银行。
If you are thinking that a bank is safer than a credit union, forget it. You money at a credit union is insured by National Credit Union Association up to $100,000, in much the same way as your money in a bank account is insured through Federal Reserve Bank’s coverage.
However not everything is rosy about credit unions and there are less conveniences in credit unions than banks. Credit unions typically have lesser number of ATM’s than banks and have less variety in financial products and services. You get better buildings, more employees to serve, more ATM’s, locker facilities, retirement plans, stock investment plans, and many other services that are not provided by credit unions.
简而言之: Difference between Credit Union and Bank • You are a member and an owner of the credit union, whereas you are just a customer of a bank whose main motive is to make profit •信用合作社是非盈利组织,而银行为其所有者赚钱 • As far as safety of your money is concerned, it is safe in both, being insured; FDIC in case of banks and NCUSIF in case of credit unions •银行提供的产品和服务多于信用合作社 • Credit unions offer more personalized services, and their advice is also trustworthy when it concerns financial products • Interest rates on saving accounts are higher in credit unions than banks while interest rates on various loans are lower than charged by banks |
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