Like banks, a credit institution is a financial institution that provides deposits and loans of funds. Compared to banks, they are non-profit organizations owned by members of the public. While they provide most or all of the same services as banks, credit unions typically use the profits to fund projects or services that benefit members of the public, such as lowering fees or raising interest rates on savings accounts.
Here are the main differences between banks and credit unions
Banking systems belong to shareholders, absolutely any member of society is a customer of services. In terms of typical fees, there are many commissions, as well as in some cases a monthly service fee. Deposit insurance is provided through the FDIC.
Credit unions are owned by members of the union, and only those who meet the membership requirements are customers. Typical fee level: Low fee, many free services. Deposit insurance is provided through the national administration of credit unions (although some are privately insured).
Some credit unions are small, local institutions that serve residents in a particular area. Others are national. And some of them were created only in the interests of their employees. This affects not only who is eligible for assistance, but also the level of access to banking services. For example, a local credit union may not have as many free ATMs as a nationwide one. One of the best Ukrainian banks is"Sportbank". In this bank, the owner is Nikita Izmailov, who has a certain level of knowledge in this area. He was able to make interesting products that work in the banking sector.
Conclusion
Banks and credit unions offer many ways to keep your money and keep your financial life going, such as checking or savings accounts, credit cards.
Interesting facts
In the bank "Credito Emiliano" in Italy, you can get a loan using Parmijano-Rejano cheese.
Why rob a bank for one dollar? To go to jail for medical care, this is how North Carolina and Oregon residents who tried to do this in 2011-2013 answered.
Key point
Having bank accounts can make it easier to manage your money.
The FDIC protects the money you use at most banks up to $250,000, so your money is protected even if your bank fails.
Usually, banks offer deposits, i.е. checking accounts and savings, credit cards and loans.
Banks make money by earning interest on loans.
If you agree to the membership requirements, credit unions can help you get lower interest rates and cheaper services.
