What is the Difference?
Banks and Credit Unions are both Financial Institutions. However, Credit Unions are not-for-profit. When you become a member of a Credit Union, you also become an owner. On the other hand, Banks are profit-driven. Rather than being owned by members, stockholders and investors are the owners.
On average, Credit Unions offer lower interest rates, and higher savings rates than Banks. This is because credit unions focus on giving back to their members. Credit Unions are concerned with their members needs, rather than the needs of investors or stockholder.
LIRFCU is much smaller than most banks. However, this is a good thing! Because of our smaller size, we are able to more easily provide you with the quality service you deserve. Also, your elected Board Members understand your specific industry, and any unique needs you may have.
Look at the below comparison between Banks and Credit Unions:
- Are not-for-profit institutions
- Have a specific field of membership
- Have members; who are owners of the credit union.
- Members elect a volunteer Board of Directors to represent their interests
- Controlled democratically by members
- Service-Oriented Business
- Return profits to members in the form of lower interest rates, and higher savings rates
- The NCUA insures LIRFCU
- Are for profit
- Can service anyone of the general public
- Have customers without ownership
- Have a paid Board of Directors; Customers do not have voting privileges
- Controlled by stockholders and paid officials
- Profit-driven Business
- Return profits to small group of stockholders
- The FDIC insures most banks
Don’t pay fees and higher interest at a profit-driven bank! Since therefore because thus