Without proper information, it’s common to assume credit unions and banks are the same, but they couldn’t be more different. While both types of financial institutions offer similar services, there are certain aspects that set credit unions apart.
| Credit union | Bank |
|---|---|
| NCUA insured | FDIC insured |
| Nonprofits | For-profits |
| Member-owned | Privately owned or publicly traded |
| Member-focused | Profit-driven |
Just as bank deposits are insured by the FDIC, credit union deposits are federally insured by the National Credit Union Administration (NCUA), up to at least $250,000 per individual depositor.
Credit unions are also member-owned! Many of the products and services that credit unions offer are born out of needs from their members. Everyone has their own specific financial need, and credit unions tailor their services to help their members meet those needs.
Being member-owned, credit unions are more member-focused than profit-driven, nonprofits vs. for-profits. This allows them to give great customer service to a wide variety of people, ranging from youths to seniors and from high net worth to those who don’t have much saved up.
Because of the diverse group of members they serve, credit unions are member-focused and offer a wide variety of products that have different perks and rewards.
For example, Everence Federal Credit Union offers an array of products, from a Youth Savings account that allows kids under 18 to earn a good rate on the first $1,000 of savings, to a Relationship Savings account that rewards members who have a full relationship with Everence by meeting certain criteria.
Another feature that differentiates credit unions from banks is the shared branching network that many credit unions participate in. The Co-op Shared Branch network serves over 62 million people and has more branches than big banks like Wells Fargo, Chase, and Bank of America. Credit unions have the unique ability to offer specialized local service, while also being able to give their members the coverage they need from coast to coast.
Lastly, credit unions often are viewed as outdated or unable to serve the newer generations, but this is a big misconception. Credit unions utilize many similar online tools that banks do, such as online banking and mobile apps. Credit unions also tend to have many useful resources on their webpages that aim to help their members and the public get educated on different finance topics.
We invite you to experience this credit union difference at Everence Federal Credit Union!
Everence is a great fit for individuals, businesses, and churches who value banking with an impact. Our profits come back to our members, often through lower fees and more competitive rates, and to local impact efforts that meet the unique needs of a community. As with many credit unions, we aim to serve people from all walks of life.
Want to be part of the credit union movement at Everence? Learn more today!