Banks vs Credit Unions
| Banks | Credit Unions | |
|---|---|---|
| Purpose | Profit-based Institution | Not-for-profit Institution |
| Ownership | Private Companies | Credit Union Members |
| ATMs/Branches | Many ATMS and Branches | Coop Network and Shared Branches |
| Control | Private Individuals | Elected Credit Union Members |
| Service Level | Less Emphasis on Personal Interactions | Local and Service Driven Interactions |
| Profits | Returned to Bank Shareholders | Returned to Credit Union Members |
| Insured By | Federally Insured by FDIC | Federally Insured by NCUA |
Credit unions are financial cooperatives, so they are operated for the benefit of the coop and its members. Credit unions are owned by the members and controlled by a democratically elected board of directors. They provide a high level of locally-based service driven interactions. Credit unions are federally insured by the NCUA.
Banks are private financial businesses, so they are operated to make profits for the owners. Banks are owned by private companies and are controlled by private individuals. They typically offer less emphasis on local and personal interactions. Banks are federally insured by the FDIC.