Differences Between Credit Unions and Banks Explained

What’s the difference between a traditional bank and a credit union? Well, think of it this way; banks are businesses owned by shareholders, credit unions are not-for-profit money cooperatives owned by those who belong to the credit union.

Credit unions, like locally-owned and operated Great River Federal Credit Union, offer the same services as banks including loans, mortgages, ATMs, checking and saving accounts. Plus convenient online banking, investment services and small business loans. The major difference is that credit unions aren’t owned by corporations, they are owned by the members. That means that when there is an excess to the bottom line, it’s not kept as profit, it is recycled as benefits that are given back to the members in the form of lower interest rates, dividends, and rebates.

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