Chapter 2. What is a bank? What is a credit union?

Have you ever wondered what is the difference between a bank and a credit union? If yes, you are not alone. 

 

How to

Here is a basic listing of characteristics of both banks and credit unions:

 

To a certain degree and depending on size, big banks tend to charge higher fees and rewards lower interest on accounts compared to credit unions and community banks.  But what credit unions and community banks lack in bells and whistles, they make up for it in autonomy, education, training and community involvement.  As a consumer, it is your decision to choose what best fit your needs and allow you to make sound financial transactions as most types of banks and credit unions offer similar services in different delivery styles. 

 

Practice

Now that you know the basic differences between a bank and a credit union, think of paying it forward and discuss your banking needs with a friend or a family member!

 

Congratulations! You can move on to Chapter 3. How to decide who should safeguard your money?

To review the full module on Banking, click here.