The Differences Between Banks And Credit Unions [Infographic]

Image: Reserve Bank of Australia

Credit unions may not be as popular as big banks, but they're still a good place to put your money. Of course, there are pros and cons to both institutions, and this infographic lays out the major differences.

The biggest difference between a credit union and a bank is how they're owned and operated. Credit unions are not-for-profit organisations, while banks are owned by shareholders and are obviously out to make a buck. Consequently, credit unions can have lower rates and fees (although this isn't guaranteed).

When you use a credit union, you become a member and part owner. This basically means you get to vote on the Board of Directors. By contrast, bank members are really just customers.

This isn't to say you should absolutely switch to a credit union, of course. Banks have their advantages; for example, they're generally more convenient. It's a choice you have to make depending on your situation, but if you're curious about the basic differences, GoBankingRates lays them out simply in the below infographic. Check it out, then head to the link below for more information.

[Via GOBankingRates]


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