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: -Credit unions are nonprofit financial institutions. Customers, referred to as “members, ” own and control them. Credit unions’ principal purpose is to improve their members’ financial well-being and return earnings to them. Shareholders own and run banks, which are for-profit businesses.
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: -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.