You may be wondering how credit unions and banks are similar and how they differ. You may be wondering if one is better than the other. Well, the answer to that really comes down to what you are looking for. Here are some considerations to help you decide what’s best for you:
Customer Service
Credit Union
Tends to provide a deeper level of customer service that is rooted in care for their community and the people in it.
Bank
Tends to be more hit or miss with customer service as they serve a larger population and are not necessarily deeply committed to the local community.
Rates & Fees
Credit Union
Are able to offer lower interest rates on loans and higher savings rates because they are owned by members. For this same reason, credit unions tend to have lower and/or less fees.
Bank
Have higher interest rates on loans and lower savings rates as they are owned by investors and must make a profit for them. Banks tend to have higher fees and/or more fees to help meet this goal.
Accessibility
Credit Union
Have fewer branches as they are local to the area they serve. However, they may be a part of the Shared Branch network which allows members access to more than 5,600 branches nationwide. They also tend to offer access to more than 30,000 ATMs nationwide.
Bank
Typically have more branches nationwide, although may have less locally. Are not part of a Shared Branch network and therefore can provide direct service to customers, but only at their own location.
Insurance
Credit Union
Deposit accounts are insured by the NCUA up to $250,000 per account.
Bank
Deposit accounts are insured by the FDIC up to $250,000 per account.
Products & Services
Credit Union
May be a full-service financial institution. Tend to offer auto, home, personal and investment products and services, and may offer business products and services too.
Bank
Tend to be full-service financial institutions, offering auto, home, personal, business, investments and more.
Interested in joining a local San Diego credit union? Check out how Wheelhouse can serve you: explore our website.
