Credit Unions vs. Banks

Credit unions are consistently shown to have more satisfied members than banks. If you're not sure what the difference is between the two, we've pointed out some key characteristics that show why credit unions continue to outpace banks in member satisfaction.

 Printable Version

CREDIT UNIONS BANKS
  • Not-for-profit financial cooperatives
  • For-profit corporations
  • Accountholders are members
  • Accountholders are customers
  • Tax exempt because they are not-for-profit cooperatives owned by taxpaying depositors
  • Pay taxes on profits they distribute to outside stockholders
  • Loan rates are capped at 18%
  • Lending rates are unregulated
  • Organized to serve a specified field of membership
  • Open to the public
  • Owned by their members, democratically controlled: one member = one vote
  • Owned and controlled by outside stockholders
  • Focus is on consumer loans and member savings
  • Focus is on commercial loans and accounts
  • Dividends are paid to the member
  • Dividends are paid to the stockholders
  • Voluntary directors and committees - voluntary reflects diversity of membership
  • Paid directors - board members do not necessarily reflect the diversity of their customer base
  • Known for offering more favorable rates and services
  • Known for higher fees and less favorable rates
  • Cooperation between credit unions
  • Competition between banks
  • Insured to $250,000 by NCUA/NCUSIF
  • Insured to $250,000 by FDIC/BIF
  • Insurance fund is self-insured - has never caused a loss to the taxpayer
  • S&L bailout used BIF taxpayer dollars
  • Motivated to maximize service
  • Motivated to maximize profits

 

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Texans CU Routing # 311987786
24-Hour Account Access Line: 972.348.2001 (800.843.6426)

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