How do credit unions differ from banks?

Credit unions differ from banks primarily in their organizational structure and mission. As non-profit institutions, credit unions are owned and operated by their members, which allows them to focus on serving the needs of their members rather than generating profits for shareholders. This often results in credit unions offering better rates on savings accounts and lower interest rates on loans compared to traditional banks. Additionally, while both credit unions and banks provide a range of financial services, credit unions typically emphasize community support, member service, and financial education.

The focus on cooperative principles enables credit unions to provide their services at more favorable terms for members, making them an appealing choice for many individuals seeking financial services.