Have you ever wondered why some financial institutions are called banks and some are called credit unions? While there are many similarities between a credit union and a bank, there are also quite a few important differences. If you're stuck between deciding between a bank and a credit union, read on to learn about the key differences.
Should I choose a Credit Union or a Bank?
Did you know credit unions offer many of the same services as big banks?
Whats the same:
- Checking and Share (Savings) Accounts
- Loans for your car, home and more
- Online Banking and a Mobile App
- Business Accounts
- Federally Insured
The Differences Between a Credit Union and a Bank
It's important to know Credit Unions are not-for-profit organizations, where they put their members and their community first. At Azura, we believe in "People Helping People" and strive to enhance more lives through our services and community involvement.
When you open an account with a credit union, you become a “member-owner.” As a "member-owner", you have an equal say in how the credit union is operated, regardless of how much you have deposited or how many accounts you have at the credit union. Credit Unions are ran by an elected Board of Directors, who serve on a volunteer basis without pay - whereas banks are ran by a paid Board of Directors, focused on maximizing profit for their shareholders (not their account holders).
Since credit unions are operated on a not-for-profit basis, profits generated are returned to our members. Many credit unions return their profits through providing competitive interest rates, low fees, dividends and more.
How are profits returned?
- Competitive loan rates
- Low fees
- Competitive Deposit interest rates
- Special member-only perks
If it sounds too good to be true, it isn't! There are over 105 million credit union members in the United States, with countless credit unions in each state. Join a credit union today and take advantage of the many benefits and services they provide to help you achieve your financial goals.