Savings banks and credit unions serve many of the same purposes, but they have important differences.
They have distinct ownership-- A credit union is owned by its members, the account holders. Where a bank is a corporation and owned by shareholders.
Membership-- credit unions restrict who can be a member, using such criteria as being employed by a particular employer or industry, or living within a certain state. Banks don't have such restrictions.
Rates-- Generally, because a credit union does not have to profit shareholders, they pay better rates on deposits and offer better terms on loans than banks do.
Safety-- Credit Unions are not FDIC insured. They have their own form of insurance, provided by NCUSIF. Banks, of course, are FDIC insured.
They have distinct ownership-- A credit union is owned by its members, the account holders. Where a bank is a corporation and owned by shareholders.
Membership-- credit unions restrict who can be a member, using such criteria as being employed by a particular employer or industry, or living within a certain state. Banks don't have such restrictions.
Rates-- Generally, because a credit union does not have to profit shareholders, they pay better rates on deposits and offer better terms on loans than banks do.
Safety-- Credit Unions are not FDIC insured. They have their own form of insurance, provided by NCUSIF. Banks, of course, are FDIC insured.
