What is A Credit Union?
What is the Difference Between A Credit Union And A Bank?
Credit unions are not-for-profit financial cooperatives that are owned by their members. Profits are returned to members in the form of better rates and fewer fees. Banks are for-profit corporations, with declared earnings paid only to their stockholders.
Credit Union vs. Bank Checking Accounts
Account holders at banks have to adjust to higher minimum balance requirements. Our PFCU Basic Checking Account has no minimum balance requirements and no monthly fees.
Credit Union vs. Bank Mortgage Loan
The fees charged by banks are typically higher than those charged by credit unions for the same type and size of loan. Since credit unions are not-for-profit, they return earnings to members in the form of better rates or reduced fees. All this means that your credit union mortgage loan will likely come with lower closing costs and origination fees.
Credit Union vs. Bank Auto Loan
Credit unions offer similar financial products as banks, but they are more affordable. Most people consider a credit union for car purchases because the rate is normally lower than dealer financing and because commercial banks are normally a percentage point or two higher than credit unions.
Credit Union vs. Bank Interest Rates and Fees
Generally speaking, credit unions offer higher dividend rates and lower loan rates. This means your savings will grow faster and you will owe less money over the term of your loan. Credit unions also tend to charge less in fees and require no or lower minimum deposit requirements.