What’s the Difference Between Banks and Credit Unions? (Infographic)
The distinctions between a bank and credit union are easily blurred; after all, both offer similar products and services like checking accounts and home loans. However, when it comes to how each operates and the benefits that depositors and borrowers receive, there are vast differences between the two.
Here’s everything you need to know about banks and credit unions to help you decide which kind of financial institution is best for your needs.
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Banks Vs. Credit Unions – By the Numbers
Bank Definition: A for-profit financial institution, chartered by a state or federal government, which accepts deposits and provides loans.
Credit Union Definition: A member-owned and operated financial co-operative where profits are shared amongst the owners.
Number of Institutions and Branches
- Institutions – 8,332
- Branches – 21,406
- Institutions – 6,096
- Branches – 83,709
Average Interest Rates
|Savings Account||0.14% APY||0.10% APY|
|12-Month CD||0.42% APY||0.27% APY|
|Checking Account||0.27% APY||0.16% APY|
|Money Market||0.19% APY||0.16% APY|
|5-Year New Auto Loan||2.63% APR||3.91% APR|
|30-Year Fixed Rate Mortgage||4.22% APR||4.24% APR|
|Savings products assume a $10k deposit|
|Source: Informa Research Services, Inc. as of 10/23/13|
Sources: GoBankingRates.com/Informa Research Services, Inc. database, FDIC, The Financial Brand