Bank versus Credit Union

[BSClay]

Can anyone tell me the difference between and bank and a Credit Union and which I should trust with my money?

[Rae74]

Credit unions are member-owned. If you have an account at a credit union, you're a part owner in the enterprise. That may not entitle you to use the executive washroom -- your CU probably doesn't even have an executive washroom -- but you're likely to be seen as a person rather than as a "cost center."
Credit unions are not-for-profit. This status helps explain why interest rates tend to be significantly better, and fees fewer and smaller, at credit unions than at banks. Any profits credit unions do make are distributed as dividends to their members. Contrast that with banks, which continually invent new fees and policies to boost profits (and to pay those stunning executive salaries).
Banks hate -- hate -- credit unions. President Franklin D. Roosevelt signed the Federal Credit Union Act into law in 1934 to "promote thrift and thwart usury," and banks have been gunning for them pretty much ever since.

Average interest rates at credit unions vs. banks
Consumer loans Credit unions Banks
Credit card
11.64%
12.76%
48-month new car
5.46%
6.91%
48-month used car
5.72%
7.50%
36-month unsecured
10.60%
12.47%
Mortgage loans
HELOC
4.70%
4.90%
Five-year ARM
5.54%
5.71%
30-year fixed
5.44%
5.58%
Savings
Regular savings
0.68%
0.44%
Interest checking
0.48%
0.36%
Money market
1.22%
0.62%
One-Year CD
2.93%
2.26%

[centsgirl]

For me I like banks better, yes credit unions may have lower fees. but in my experience in banking I was treated better at my bank then the union I use to use.

[BSClay]

Thank you for all your help. I think the Credit Union sounds better for my needs.

[moneysense]

Other factors that you need to take into account with credit unions is availability of the credit union itself, also which ATMs you can use with the Credit Union and the availability of these ATMs.

When you deal with a Credit Union and it is located in another town or city, you sometimes have the option of going to another Credit Union near you and may be able to take care of your business even though the Credit Union you visit is not a branch of the main one. These are call Service Centers.

This is a great advantage over Banks because if you are out of the state where your bank is located and there is no bank branch available, you cant take care of what you need to.

And if you use an ATM machine that is not part of your banks network, you will end up paying both a fee to the bank itself plus the ATM fee and this can run you $6 and more.