Even if the working of banks and credit unions are similar, their main goal is different. <\/p>

A customer needs to open an account and deposit money in a bank, to become a customer. However, a bank\u2019s obligation is towards their shareholders and not their customers.<\/p>\n

In comparison to credit unions, the interest rates on savings are lower and interest rates on loans are higher with banks. <\/p>

When the difference between the bank\u2019s savings interest rates and the loan interest is larger it gives the bank more scope to make a profit.<\/p>\n

Credit unions are member-owned hence they\u2019re unique. When a customer deposits money in a credit union account, they become an owner-member of the credit union. They are both a customer and an owner. <\/p>

This money that various members deposit in the credit union is used to make loans to other credit union members, similar to banks.<\/p>\n

The main goal of a credit union is to serve its members, so the money that could have been profit is taken and used to help credit union members. <\/p>

Very often credit unions offer better rates on savings products and lower interest rates on loan products compared to banks. Lower fees are also offered by the credit unions.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t