All VyStar offices will be closed on November 26.
So. What’s the difference between a credit union and a bank? It’s simple, really.
Credit unions are created by groups of people wanting to provide financial services for their profession, business or community. They are financial cooperatives — within a grassroots effort — and are not-for-profit.
A credit union is owned by its members, rather than stockholders. Providing service is the primary goal, as opposed to generating income.
Unlike a bank, credit unions return surplus income to their members in the form of dividends and interest, free or low-cost services, expansive products, along with convenient ATMs and branches.
Credit unions typically offer lower balance requirements and fees on your accounts.
Because credit union members are related by geography, employer, occupation or some other item as determined by their bylaws, you’re more likely to be approved for a loan at a credit union. Credit unions work closely with and know their members.
Credit unions have a volunteer board of directors who help provide strategic direction for the credit union. They are also members. Other types of financial institutions have paid boards of directors who typically are shareholders.
And just as banks are insured by the FDIC, deposits at a credit union are insured up to $250,000 through the NCUA.
In addition to providing personalized and relevant customer service, many credit unions give back to their members through community outreach and development. That’s because they rely on their members as much as members rely on their credit union.