BANKING AFFAIRS

Detailed explanation-1: -Since credit unions are member-driven and not for profit, members receive higher interest rates on savings, lower rates on loans and lower fees. On the other hand, profits made by banks are only distributed among their shareholders, meaning that the money banks make isn’t returned to the people they make it from.

Detailed explanation-2: -What is a major difference between retail banks and credit unions? Retail banks only serve businesses, while credit unions only serve individuals. Retail banks operate in order to earn profit, while credit unions are nonprofit. Retail banks only have small local branches, while credit unions are nationwide.

Detailed explanation-3: -Key differences between banks and credit unions Credit unions may have low-interest rates on loans and lower fees than banks. Members of a credit union are part owners of the institution while investors of banks are part owners and have a say in how the bank is run depending on their number of shares.

Detailed explanation-4: -Banks emphasize business and consumer accounts, and many provide trust services. Credit unions emphasize consumer deposit and loan services. Savings institutions emphasize real estate financing.