BANKING AFFAIRS

Detailed explanation-1: -How is a credit union different than a bank? Credit unions are not-for-profit organizations that exist to serve their members. Like banks, credit unions accept deposits, make loans and provide a wide array of other financial services.

Detailed explanation-2: -Federal credit unions are cooperative associations organized in accordance with the provisions of the Federal Credit Union Act for the purpose of promoting thrift among their members and creating a source of credit for provident or productive purposes.

Detailed explanation-3: -Banks and credit unions both offer a number of financial products, including savings accounts and certificates of deposit (CDs). The main difference between the two is that banks are typically for-profit institutions while credit unions are not-for-profit and distribute their profits among its members.

Detailed explanation-4: -Differences Between Credit Unions & Banks Since credit unions are member-driven and not for profit, members receive higher interest rates on savings, lower rates on loans and lower fees.