Credit Unions Versus Banks


  Credit Union Bank
Organization Not-for-profit cooperative For-profit cooperative
Primary Objective To meet member/owner needs To maximize profit
Ownership All members who are users of service Stockholders who may or may not be customers or users
Directors Volunteers Paid Directors
Decision Making Member-controlled, one vote per member Only stock holders vote, one vote per share of stock
Distribution of Net Income Dividends issued to members and used for capital developments, additional allocations, equipments, etc. Dividends issued only to stock holders
Community Links Owners/Leaders reside or have an interest in the community. Owners/Leaders may live anywhere in the world; head-quaters could be anywhere in the U.S.
Rates/Products Offer better overall rates and lower fees due to the nature of the organization and its dividends distribution Rates and Fees may not be favorable because of for-profit status
Generation of Capital Generated only through income stream Generated through income stream and/or insurance of stock
Who Benefits Members/Owners Stockholders