Bank vs. Credit Union

When choosing where you want to conduct your personal banking one broad decision that you have to make is whether you want to use a bank or a credit union. While both provide the same key functions there are some major differences that can drive your choice on whether to use a bank vs. a credit union.

Credit Union

The biggest factor differentiating credit unions from banks is that they are not-for-profit organizations, so while they provide the same basic services they are not ultimately trying to make a profit off of those services.
Key advantages to using a credit union include:

Bank

After reading the advantages above it can be easy to think that credit unions are hands down better options for your personal banking. However, there are some key reasons why banks are so much bigger and have so many more customers nationally. Key advantages to using a bank include:

Bank vs. Credit Union

Ultimately you should consider the scale of your financial needs when determining which suits you better and which will result in lower costs to you. For low and middle income individuals with few banking needs and whom do not travel too much, a credit union can often be the best option. For those who need extensive banking services and who travel a lot, a bank is likely a better option.
By Jeffrey Glen

Copyrighted 2016. Content published with author's permission.

Posted in ...