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Banks vs credit unions

Different owners, often different fees and rates.

4 min read

Credit unions are member-owned non-profits; banks are usually for-profit companies. Both can be good choices, and both are insured when they're federally covered.

Credit unions often offer

  • Lower fees
  • Better rates on savings and loans
  • A local, community focus
  • Membership based on where you live, work or belong

Banks often offer

  • More branches and ATMs, especially national banks
  • More features in their apps
  • Open membership

Check insurance

Banks are insured by the FDIC and federally insured credit unions by the NCUA, both up to $250,000 per depositor, per institution, per ownership category.

General educational information, not financial advice. Rates and fees change; check with your bank or credit union. Nickel Savings isn't paid by any bank or financial company.