The difference between Banks and Credit Unions


Credit Unions are Different from other financial institutions. Here’s how.

Credit unions differ from banks and other financial institutions in that those who have accounts in the credit union are its members and owners, and they elect their board of directors in a one-person-one-vote system regardless of their amount invested.

Credit unions see themselves as different from mainstream banks, with a mission to be “community-oriented” and “serve people, not profit“.

Credit unions offer many of the same financial services as banks, but often using a different terminology; common services include share accounts (savings accounts), share draft accounts (checking accounts), credit cards, share term certificates (certificates of deposit), and online banking.

Normally, only a member of a credit union may deposit or borrow money.

Surveys of customers at banks and credit unions have consistently shown a significantly higher customer satisfaction rate with the quality of service at credit unions.

Credit unions have historically claimed to provide superior member service and to be committed to helping members improve their financial situation.

In the context of financial inclusion credit unions claim to provide a broader range of loan and savings products at a much cheaper cost to their members than do most microfinance institutions.

A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at reasonable rates, and providing other financial services to its members.

Many credit unions exist to further community development or sustainable international development on a local level.

Click Below to find a Credit Union in the following Canadian provinces.