• Shoals Chamber of Commerce

What is a Credit Union?

More than likely, you've seen credit unions all over your town, but might be curious as to how they differ from a traditional bank. In a nutshell, credit unions are member-owned, non-profit financial institutions, while banks are for-profit.

According to Mint, here are the biggest differences between banks and credit unions:

  • Credit unions are non-profit financial institutions that are owned by their members. While banks can be either private or public, they are for-profit institutions.

  • To join a credit union, you must first qualify for membership, but anyone can be a customer at a bank.

  • Credit unions are able to offer lower fees and better interest rates to their members, while banks offer higher fees and interest rates on loans.

  • Banks offer a diverse array of products while credit unions' products may be limited.

  • Credit unions provide more personalized customer service than banks.

  • Credit unions' deposit insurance is provided by NCUA while banks are insured by FDIC.

This Friday, July 30th, the League of Southeastern Credit Unions will be launching an "I Love My Credit Union" Day, an opportunity for all credit unions to post on their social media accounts using the hashtag #ilovemycreditunion in an effort they're calling a "Social Media Blitz!"

Among those participating are several institutions that we are proud to call Chamber Members! These include Florence Federal Credit Union, TVA Community Credit Union. Alabama Central Credit Union, Listerhill Credit Union, and Family Security Credit Union.

Keep an eye out for the #ilovemycreditunion posts this Friday, and be sure to spread some local love to our financial institution Chamber members!

33 views1 comment