Due to the rate of increased charges by the bank, many of there customers are now leaving them for credit unions as their best option. Whenever you want to go for a loan, you really need to think about it before deciding between credit unions and banks which will be of much benefit to your financial needs.
Credit Unions and banks are two similar institutions that offer similar products, there are basic differences in how they function. With the table below we have been able to differentiate the difference between credit union and banks.
Difference Between Credit Unions And Banks
- The Credit unions are a non-profit organization.
- Credit unions have a greater number of customer service and lower fees, but have higher interest rates.
- Offers limited financial products to their customers.
- Membership is required before credit unions can see you as one that is qualified for their loan.
- Credit unions can be national or local.
The Union Online Banking Registration Guidelines will also interest you.
- Banks are profit-making institutions.
- Banks have lower interest rates and higher fees, Banks also have higher fees but more convenience when it has to do with their location, technological efficiency, mobile accessibility, and their rewards.
- Mostly offer different, types of financial products.
- Banks do not require any membership before granting you a loan as long as you meet you up to their requirements.
- Banks too can also be national or local.
In conclusion, Credit unions and banks offer similar products but are still not the same.