Credit Unions vs. Commercial Banks
This section aims to help you decide whether to choose a credit union or commercial bank and provide an overview of the different services they offer.
How do I decide between a credit union and a bank?
This video, narrated by Francis Perez, the Senior Retention Specialist at CEO, outlines the differences between commercial banks and credit unions. If you have more questions about commercial banks and credit unions, please consult a CEO staff member or a certified financial professional.
Commercial Banks
Are for profit institutions, meaning they have to make money for their investors
Do not require membership and anyone is eligible to open an account
No decision making ability in bank policies
Will often have high interest rates on loans and lower interest rates on savings products
Have more products and investment opportunities
Do not consider you a stakeholder and often have stricter rules
Often have more locations and are easier to access
Have more fees which are often higher in dollar value
Can be traded on the stock market
VS.
Credit Unions
Are not for profit institutions, and are supported by their members
Require membership
Some Credit Unions have a field of membership to join (eligibility is based on factors such as location, school, or being an employee of a company)
Able to vote on decisions and credit union policies
Will often have low interest rates on loans and higher interest rates on savings products
Have fewer products and investment opportunities
Consider you a stakeholder in the credit union and customer service is often better
Have fewer locations and are harder to access
Have fewer fees which are often lower in dollar value
Cannot be traded on the stock market