difference between a credit union and a bank

It can be difficult to tell the difference between a credit union and a bank. There are a lot of similarities between the two; they both offer checking accounts, credit cards, auto loans and other financial products. However, there are a few distinct differences that set credit unions apart.

Credit unions are member owned, not-for-profit companies. That means you get a lot of great, free benefits – like lower loan rates, high deposit rates and little-to-no service fees. Once you have an account, you become a member and a part owner in the company. That’s why we say our accounts earn dividends, not interest. Banks pay profits to their stockholders or owners. That means you get stuck with higher interest rates and less flexible loans.

Credit union memberships are based on commonality, such as a specific community, organization or place of employment. We’ve created a warm, family environment, so any immediate family member is also eligible to join. You’ll get more value and a more affordable banking experience with Advancial.