The Difference Between a Credit Union and a Bank
As a member of a credit union, do you know what makes credit unions so awesome? While both banks and credit unions have things like savings accounts, checking accounts, and loans, it is how they do their day-to-day business that makes them so different.
Banks are for-profit companies. This means they make their money by charging fees and lending money to their customers. The money they make goes to their stockholders who own shares of their business. Because they are a for-profit company, they also pay taxes back into the communities that they do business in.
Credit unions are financial institutions that are not-for-profit cooperatives. Credit unions also are owned and controlled by their members. A credit union doesn’t have stock holders who own the business. When you are part of a credit union, you are not seen as a “customer”, you are a member and owner of the credit union.
Thanks for reading! We’ll see you next time to learn more about how to save for your future. Do you have a safe place to save your money? If not, check out our options for Youth Savings!