Difference between Credit Unions and Banks.

[quixotron]

Hello. My company has presented me with a credit union brochure or so. What is the difference between those and my bank?

Thanks.

 

[colin mac]

Credit unions are for savings and small loans.
Banks are better for holding money temporarily, online banking, wiring money, etc.
Credit unions give you higher interest on your savings.
Credit Unions don't give loans as high as banks do, something like a few times the amount in your account.

The main difference is who they're run by.

 

[HiTech]

There are many credit unions today that parallel bank services. They offer up to 30yr+ home mortgages too. While they often do not offer large loans for business/corporation start-ups, they do loan out worthy sums of cash. Often their rates are more competitive than most banks offer. Each member is considered a "shareholder" if you will, whereas a bank is different. I stopped dealing with banks years ago due to high fees for services that credit unions offered for free! Not to mention better interest rates and loans that are easier to secure and don't carry high processing fees. I also got sick and tired of both my banks requiring ID when I cashed a check. They would secure a cashed check using my savings account!! My two credit unions don't do that and they know me by face without the need for showing ID (in other words they remember faces). Your savings is insured by a credit union just as good as it is by a banks. It's also been suggested that CUs are easier to work with on late payments or during times of unemployment compared to banks that are eager to foreclose and slap on late fees or early pay-off penalties.

Look into your employer's CU in detail to see if they provide the services you presently need or may need in the future. Check out their fees and rates and compare them to your bank. Most likely the CU comes out ahead. Also check out other CUs in your area... some do not require you to be a member of a special organization or employer to join.
IMHO, banks really do blow!