Credit Unions vs. Commercial Banks

Commercial Banks

• Are for profit institutions, meaning they have to make money for their investors

• Do not require membership and anyone is eligible to open an account

• No decision making ability in bank policies

• Will often have high interest rates on loans and lower interest rates on savings products

• Have more products and investment opportunities

• Do not consider you a stakeholder and often have stricter rules 

• Often have more locations and are easier to access

• Have more fees which are often higher in dollar value

• Can be traded on the stock market

VS.

Credit Unions

• Are not for profit institutions, and are supported by their members

• Require membership

• Some Credit Unions have a field of membership to join (eligibility is based on factors such as location, school, or being an employee of a company)

• Able to vote on decisions and credit union policies

• Will often have low interest rates on loans and higher interest rates on savings products

• Have fewer products and investment opportunities

• Consider you a stakeholder in the credit union and customer service is often better

• Have fewer locations and are harder to access​

• Have fewer fees which are often lower in dollar value​

• Cannot be traded on the stock market