Credit Unions vs. Banks: What’s the Difference?

Credit Unions vs. Banks:  What’s the Difference?

Credit Unions and banks are similar in a few ways.  They both offer savings accounts; Credit Union’s refer to them as “Share Accounts”.  Your money is safe and secure in credit unions and banks.  The Federal Deposit Insurance Corporation (“FDIC”) and the National Credit Union Administration (“NCUA”) insure your deposits up to $250,000.

However, the reason for this article, in part, is to toot our own horn about credit unions.

Credit Unions are for people – not for profits.  It is part of what makes us different from other financial institutions.

Members at a credit union are member-owners because their deposit represents a share of ownership; however at a bank, the owners are typically small groups of investors who benefit from the profits.  Credit union members are united by a common bond of membership.

And as you are aware, at Evergreen Park Schools Federal Credit Union, we are small enough to know you and your family personally and therefore, better able to assist you with honest, personalized service to help you reach your financial goals.   You are not just a number; you are a member: once a member, always a member!  Whether you move, switch jobs or experience any other life event, you are still a Member of Evergreen Park Schools Federal Credit Union.

Credit Unions have the philosophy of “People Helping People”.  Who better to support you than your credit union who knows you and can offer tailored suggestions to fit your needs.   Additionally, Evergreen Park Schools Federal Credit Union has two Certified Credit Union Financial Counselors on staff ready to discuss your particular situation.

Here’s the highlights of the difference between Credit Unions and Banks:

Credit Union	Bank
Not-for-Profit	For Profit
Member Owned	Stockholder Owned
Member Driven	Shareholder Driven
Insured by NCUA up to $250,000	Insured by FDIC up to $250,000
Board of Directors are VOLUNTEERS!	Board of Directors are Paid
Small and community based	Typically, large and nationally-based
Profits are returned to Members through dividends, lower loan rates and lower fees	Profits are returned to Stockholders
Board Members must be members of the Credit Union	Stockholders do not need to be customers of the bank.
Credit Unions’ goals are to return profits to their members.	Banks’ goals are to increase stockholders’ profits.
Credit Unions generally know their members personally which, in turn, give Members more personalized service	Banks are generally larger which makes it difficult to know their customers and their needs.

Credit Unions help hard working people like you, work, live and prosper.  Their not-for-profit, member-owned structure guarantees that earnings benefit members’ financial well-being.

Credit Unions have an interest in advancing their communities because they are owned by the members they serve every day.  That’s why they work so hard to improve members’ savings; help them invest in their homes, business and education and secure a solid financial future.  No matter what life brings, Credit Unions have been there to help strengthen the financial lives of individuals, families and businesses in their communities.

If a high level of customer service and money-saving products are what you need in a financial institution, call and speak with us at Evergreen Park Schools Federal Credit Union today.  We are happy to help you realize all of your financial goals.