BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Banks have Checking accounts and Credit Unions have Savings Accounts
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Banks are for profit. Credit Unions are Non-profit.
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Banks can give loans and Credit Unions cannot
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Credit Unions allow everyone to join and Banks are selective
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Detailed explanation-1: -Banks are for-profit, meaning they are either privately owned or publicly traded, while credit unions are nonprofit institutions. This for-profit vs. not-for-profit divide is the reason for the difference between the products and services each type of institution offers.
Detailed explanation-2: -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-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: -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.
Detailed explanation-5: -Credit Unions are local and community based while banks are national or regional based. This is important to consider because credit unions offer more personalized customer service than banks and allow members to have a common bond through their place of employment and where they live.