BMI Federal Credit Union
The Credit Union Difference
How is a credit union different from a bank?
Maybe people are curious about how a credit union is different from a bank. Each is an institution that offers many of the same financial services such as checking accounts, savings accounts, online banking and loans of various types. The main difference is in philosophy and beneficiaries of earnings.
Credit Unions have a long tradition of offering a unique approach to personal finance. The biggest difference is that a Credit Union is founded on democratic, cooperative principles. Rather than being a "for-profit corporation" that answers to stockholders and investment firms, a Credit Union is a not-for-profit organization that is fully owned and directed by its members. The Board of Directors is made up of credit union members, elected by other credit union members. It's a system that ensures your credit union will always have your best interest in mind.
This means that earnings are paid back to the member-owners in the form of higher savings rates and lower loan rates. While this means more savings for members, a typical member will not notice much, if any, difference in their typical daily banking habits.