In this “Dollars and Sense,” Cory Blake from New Horizons Credit Union joined Studio10 to talk about the differences between credit unions and traditional banks.
Click on the Studio10 video link to watch the complete interview. for your information the talking points are listed below:
What is the primary difference between a Bank and a Credit Union?
Credit Union is a not-for-profit financial institution. Chartered by either the Federal or the State. Controlled by members instead of shareholders. Banks are for-profit financial corporations they are publicly traded and conduct business to maximize earnings to profit stockholders.
If the Credit Union is owned by its members, then who runs the credit union?
The members elect a Volunteer Board of Directors. due to the cooperative structure, there are no outside shareholders to satisfy which creates some nice benefits for members.
What are some of the consumer benefits for credit union customers?
Because credit unions are not-for-profit they return profits to their members in the form of lower rates on loans and higher rates of return on savings.
If you return your profits to members, then what do banks do?
Banks would return their profits to the stockholders of the bank.
What are the differences in products and services offered between a bank and a credit union?
Both institutions offer very similar products and services. Depending on the size of the credit union, you may find more specialized savings products or smaller loan products, whereas, larger banks may offer more commercial products and loans for businesses.
What do you think is the deciding factor when a consumer is choosing a bank or a credit union?
You really have to think about your own personal needs and goals. if you are looking for a consumer loan that is rate driven, then you may want to consider a credit union. if you want the convenience of multiple branch locations or your looking for business products, then a bank may be your better option. both financial institutions can serve you well, it just depends on your financial needs.
New Horizons Credit Union 3445B Saint Stephens rd. Mobile, AL 36612-1238 (251) 316-3240 www.newhcu.org