What makes a credit union different?

Millions of Americans choose to do business with a credit union, instead of turning to big banks for their financial needs. And no wonder–credit unions have been a consumer favorite for service and customer satisfaction in the independent American Banker/Gallup poll every year since it began in 1983, according to the Home & Family Finance® Resource Center.

So what are differences between big banks and a credit unions?

Credit unions are member-owned

Credit unions are cooperative financial institutions that are owned and controlled by their members,  the people who use the credit unions’ services. Credit unions  usually serve groups that share something in common: where they work, live, or go to church. When you bank at a big bank, that institution is owned by investors and shareholders.

Credit unions are not-for profit

When you do business with a credit union, all profits are returned to you, the member. You can see this in the form of lower interest rates, higher dividends and better service. Big banks, on the other hand, have many fees and policies that boost profits for their investors and shareholders. Banks pay their boards big salaries while credit unions have volunteer board members.

Deposits at credit unions are insured through the NCUA

The National Credit Union Association insures federal and state credit union accounts up to $250,000. The NCUA is the independent federal agency that charters and supervises federal credit unions. NCUA, backed of the full faith and credit of the U.S. government, operates the National Credit Union Share Insurance Fund (NCUSIF) insuring the savings of 80 million account holders in all federal credit unions and many state-chartered credit unions. The credit union system is not reimbursed through taxpayer dollars when banks go under, as is the FDIC; credit unions operate on a “pay as you go” system.

Thousands of convenient locations

One of the biggest misconceptions about credit unions is that they are outnumbered by big banks in terms of branch and ATM locations. In many cases, this simply is not true.

Tech CU, for example, offers Shared Branching so even if there isn’t a Tech CU Financial Center nearby, you can still access your accounts through an in-branch visit at more than 5,600 locations internationally that are part of the CU Service Centers Financial Network.

Some credit union members also have access to over 60,000* surcharge-free ATMs nationwide, if their credit unions are part of the ATM networks such as Allpoint and CO-OP. Combined, these two networks represent the largest number of surcharge-free ATMs in the country!

Another misconception is that credit unions don’t offer the products and services that big banks do. That’s not true either.

Credit unions offer all things financial: checking, savings, Certificate, Money Market, IRA accounts along with mortgage and auto loans, credit cards, investment programs and business services… you name it, they’ve got it. And if you’re on the go, most credit unions have online and mobile banking too. In fact, with a credit union, you can get all the products and services you’d expect from the big banks, but without all the high fees. What’s not to love?

Here’s a fun video that explains the difference between big banks and credit unions in more detail:

From products and services to locations and fees, whether you choose a bank or credit union for your financial needs, knowing the differences can help you make the most of your money.