What is the difference between a credit union and a bank?

A credit union is a not-for-profit financial cooperative owned and operated by its members, while a bank is for-profit and typically owned by shareholders. Credit unions prioritize the needs of their members, offering lower fees, competitive interest rates, and personalized service. In contrast, banks focus on generating profits and may have higher fees and interest rates. Credit unions often have membership requirements based on a common bond, such as employment or location, whereas banks are open to anyone. As member-owned institutions, credit unions reinvest their earnings to benefit members through lower rates on loans, higher rates on savings, and expanded services. Ultimately, credit unions provide a more customer-centered, community-oriented approach to financial services compared to banks.