About Banks And Credit Unions
Whether be a member of a bank or go for credit unions, each segment has its benefits. The foremost distinction is that the bank works for for-profit organizations while credit unions are serviceable non-profit organizations.
Being profit organizations banks run businesses for revenue generation. This can be in dividends, distribution benefits to shareholders, interest, etc. This benefits the stockholders of the bank but not the customers. On the other hand, credit unions run as non-profit organizations and spread their profits among the customers themselves. This can be with more interest rates on deposits, ATM installations, community involvement, and other activities for client benefits.
Credit unions are run by cooperative agencies sharing mutual bonds, be it in industries, similar companies, or common associations. This makes them exempt from any federal taxes and levies. Instead, some credit unions also attain subsidies from their organizations. Credit unions are only available to the members.
What Is More Accessible?
Accessibility is somehow a setback for credit unions but a perk for banks. Although banks are profit organizations, these are open to all, irrespective of bank holders or those with no banking history. Some credit unions also allow new memberships but with a fee charged. Banks are exempted from that.
Banks have more ATM set-ups across the nation, while credit unions affiliate with other organizations for free ATM installations. Not only this, but banks also receive enough funds from their profits to access mobile apps and other services for more accessibility to the public. This may be difficult to find in non-profit organizations.
About Serviceability
As part of their service, credit unions can be trusted to deliver financial assistance to the customers because they prioritize their members. Special attention and services are received for the members.
The Takeaway
Banks are easy to reach and more accessible but less profitable to their clients. Credit unions are limited to their members, but premium treatment and priority in financial help is an unquestionable boon.
References:
https://www.emerald.com/insight/content/doi/10.1108/09604520010307049/full/html
https://journals.sagepub.com/doi/abs/10.1177/056943459604000109