Should You Put Your Money In Banks Or Credit Unions? Do you wonder if you should keep your money in banks or credit unions? You're not alone. In fact, many individuals aren't even sure what the difference is between one and the other. The truth is that there are some similarities and differences between the two financial institutions. Only you can decide which one is right for your financial needs.Similarities Between These InstitutionsBanks and credit unions have similarities. They are both places where customers can put their money into checking accounts or savings accounts,Fake Oakley Sunglasses, and where they can take out loans. Both types of financial institutions have ATMs on their premises and in various locations such as airports and shopping malls. ATM stands for automatic transaction machine. Both the bank and the credit union issue plastic debit and credit cards to their customers, and have branch locations around town for the convenience of all concerned. Each institution keeps a large amount of money on the premises, has tellers manning desks or windows, and has security in place, such as armed guards or surveillance cameras. Customers' money is protected by the FDIC, which is the Federal Deposit Insurance Corporation.Differences Between the TwoThere are also differences between banks and credit unions. A main difference is that the first is a profit driven company, while a credit union is a non-profit organization that is owned by its members. It is similar to a cooperative where members have voices and voting rights. It is less expensive to keep money in a C.U,Cheap Oakleys. because only minimal fees are charged. These fees are set only to pay for running the organization rather than to make a profit. Because of this, personal loans, credit cards, mortgages, and car loans have lower interest rates. Fewer fees are tacked on to savings and checking accounts as well. Credit unions were formed to protect members' rights and are an example of a community model of banking. Certain types of corporate money accounts may need to be held in traditional banking facilities rather than C.U.'s.Where should you keep money and with whom should you do business financially? This all depends on your money needs. Banks are profit driven, and so they are more costly when it comes to loans and service fees. Credit unions are owned by the membership but there may be certain rules and regulations that must be followed in order to join and retain membership. It would be a wise financial move to investigate both options in your area to decide which is right for you.