List of Mortgage Companies

What are the differences between banks and credit unions?

I am looking into setting up a new account but I'm not sure which way to go. I have always belonged to credit unions but I am curious to know the differences between the CUs and banks.

Public Comments

1. You are a member and part owner of a credit union. You don't own the bank unless you have stock in it. Banks cost more for you to use than Credit Unions, plus CU has lower interest rates.
2. Bank Banks are community, regional or national for-profit business corporations owned by private investors and governed by a board of directors chosen by the stockholders. Credit Union Credit unions are non-profit financial cooperatives owned by their members and governed by a board of directors elected by, and from among, those members. Usually there is a common bond among the members, such as belonging to the same organization or living in the same geographical area. Credit unions accept deposits from their members and use them to make short-term loans. Deposits are regarded as purchases of shares, and all earnings of the credit union are paid out as dividends to members Savings Institution Savings institutions (also called savings & loans or savings banks) specialize in real estate financing. They can be either corporations or mutuals (a type of business where making a deposit is like purchasing stock in the organization). Savings institutions always have the letters SSB or FSB after the name to indicate whether they are a state savings bank or a federal savings bank, respectively. Both types are governed by an elected board of directors.