Credit Unions vs. Banks

Members... Not customers

Credit unions have members. Each person who deposits money in a credit union becomes a member of the credit union because the deposit is considered their share of ownership. Therefore we have member-owners!

Banks have customers. They can serve a large portion of the general public, and the customers have no voice in bank operations regardless of how much that customer has on deposit.

Not-for-profit... Instead of FOR profit

Credit unions are not-for-profit. This means that expenses are paid, reserves are set aside, and surplus earnings are returned to members in the form of lower loan rates, and higher dividend rates.

Banks are for profit. Banks create profit to share with their investors, not for the mutual benefit of all of their customers.

Cooperative... Instead of Individual Entities

Credit unions believe in helping each other, just as we help our members. We share resources, and merge ideas to help our industry as a whole. Through development of worldwide and national organizations we can continue this tradition.

Banks typically are organized and cooperate on individual or state levels, however are typically unwilling to share ideas and resources with other banks or financial institutions.

Serves Specific Groups... Not Just the General Public

Credit unions were originally developed to serve a select group of members. HUCU was originally started in 1931 to serve Farm Bureau employees. As demand and times change, we have added more employer groups, including Local IBEW 481 contractors, to allow our credit union to grow and offer more services to our members. Many credit unions now hold community charters, allowing them to serve anyone who lives or works in a specific city or county. This has allowed the credit union movement to expand and help many more people. However, because we develop our membership this way, we know and work with our members on a personal level.

Banks typically gain customers by whatever means necessary. This generally means anyone in the general public can become a customer at any time, without getting to know their customers.