Credit Unions Vs Banks
Learn what makes a credit union different from a bank.
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| Feature | Typical banks | Community First Credit Union |
| Ownership | Owned by shareholders or private owners | Owned by members |
| Profit model | For-profit, with earnings benefiting shareholders | Not-for-profit, with earnings reinvested to benefit members through better rates, lower fees, and services |
| Customer relationship | Account holders are customers | Account holders are members with equal voting rights and the ability to elect the board of directors |
| Governance | Board decisions are driven by business returns | Members elect the board of directors and board service is volunteer-based |
| Insurance | Deposits are federally insured by the FDIC up to $250,000 per depositor, per ownership category | Deposits are federally insured by the NCUA up to $250,000 per member, per account type |
| Rates and fees | Often higher fees and less favorable rates | Typically offers lower fees and better rates because the focus is member value |
| Community focus | May support communities, but profit growth is a primary driver | Built to serve members and strengthen local communities through a relationship-based approach |
| Products and services | Checking, savings, loans, and other financial products | Checking, savings, loans, mortgages, and investments for consumers and businesses |
| Member experience | Often more transactional | Designed to be more personalized, local, and member-focused |