Financial Notices

What is the difference between a Federal Credit Union and a Bank?

They just announced a Federal Credit Union open to anyone in my city (rather than one tied to a specific company). So What is the difference between a Federal Credit Union and a Bank? Are there any advantages and/or disadvantages to a Federal Credit Union over a Bank?

Public Comments

1. Credit unions provide the same kinds of services that banks do. You can open a checking account, buy a certificate of deposit and get a loan. Some will even sell you stocks, and offer you a safe-deposit box. Generally, if it carries National Credit Union Administration insurance, a credit union is a good place to take your business. For-profit banks are in the business of making money for their shareholders. Credit unions are not-for-profit organizations that are supposed to focus on service and savings for their members.