Credit Unions vs. Banks
Credit unions and banks offer similar products and services, like checking accounts, loans and credit cards. So, what’s the difference between a credit union and a bank?
Owned by Members
Credit unions are grassroots organizations created by people who want to provide financial services for their communities. Banks are for-profit and owned by stockholders, while credit unions are nonprofits and owned by their members and governed by a volunteer board of directors.
Not-for-profit vs. For-profit
Because we’re a member-owned, not-for-profit financial institution, our main goal is providing great service to our members, rather than generating income for stockholders. Unlike banks, we return extra income to our members in the form of higher dividends, low fees and free services.
Accounts Are Insured
Your VyStar accounts are insured by the National Credit Union Share Insurance Fund (NCUSIF), an arm of the National Credit Union Administration (NCUA). NCUA insurance is similar to the deposit insurance protection offered by the FDIC, which means it is backed by the U.S. government and insured up to the legal limit of $250,000.
Easier Approval
You’re more likely to be approved for a loan at a credit union because a credit union’s primary goal is to promote the financial well-being of its members, rather than make a profit. Credit unions work closely with and know their members.
Community Involvement
When you're a credit union member, your money stays within a community that you belong to, whether that's based on your location, your profession or another common bond, like serving in the military. Credit union funds help members improve their financial lives, whether they're getting a first mortgage, saving for college, or starting a small business. Many credit unions are deeply involved with charities and nonprofits that serve those same communities. As a credit union member, you're not just doing well financially — you're improving the community around you.