Difference Between Bank and Credit Union

By: | Updated: Jun-18, 2022
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You might be wondering what the difference between a bank and credit union is. Well, let’s see the differences between them. A credit union is a financial institution that was established by its members rather than a specific company.

It is usually also owned by its members and managed democratically by them. The purpose of a credit union is usually to provide personal or business loans and other financial services to its members. In addition, most credit unions offer savings products such as checking accounts, money market accounts, and certificates of deposit (CDs). However, many credit unions also offer additional financial services that are not offered by banks.

Summary Tables

Bank Credit Union
Established by institution Established by members
Bigger number of credit limits Smaller number of credit limits

Difference Between Bank and Credit Union

What is Bank?

A bank is a financial institution that is owned by a specific company. A bank also serves as a business. Therefore, it does not provide personal or business loans to its customers.

Banks usually do not provide any financial services other than banking services such as checking accounts, savings accounts, and money market accounts. In addition, banks do not usually offer any additional financial products such as CDs and loans.

What is Credit Union?

A credit union is a financial institution that was established by its members rather than a specific company. It is usually also owned by its members and managed democratically by them.

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The purpose of a credit union is usually to provide personal or business loans and other financial services to its members. In addition, most credit unions offer savings products such as checking accounts, money market accounts, and certificates of deposit (CDs). However, many credit unions also offer additional financial services that are not offered by banks.

Bank VS Credit Union

A bank is a financial institution that is owned by a specific company. It also serves as a business. Therefore, it does not provide personal or business loans to its customers.

Banks usually do not provide any financial services other than banking services such as checking accounts, savings accounts, and money market accounts. In addition, banks do not usually offer any additional financial products such as CDs and loans.

Credit unions are owned by their members rather than a specific company. They are usually also owned by their members and managed democratically by them.

The purpose of a credit union is usually to provide personal or business loans and other financial services to its members. In addition, most credit unions offer savings products such as checking accounts, money market accounts, and certificates of deposit (CDs). However, many credit unions also offer additional financial services that are not offered by banks.

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