The discussion over whether a credit union or a bank is the better choice has been ongoing for many years. Both offer accounts, loans, and savings products, but differ in their core structure and goals.
Benefits of credit unions:
- Member ownership and non-profit status — profits are returned in the form of lower rates or other benefits
- Lower fees
- Better loan rates
- Individual approach to each client case
Bank vs credit union loans: Banks often offer a wider range of financial products, but credit unions win with lower rates and fewer fees. For example, members of Secure First CU receive favorable APRs on auto loans, personal loans, and mortgages.
Are credit unions safer than banks?
Both options are equally safe. Credit union deposits are protected by the NCUA for amounts up to $250,000, the same coverage that banks provide through FDIC insurance. The main difference lies in the approach to service: credit unions appear more loyal toward the individual customer.