Credit Union and Bank are both financial institutions; one can have account, deposit money, and take loans for buying a car or buying home at credit union as well as bank. But credit union is a local financial institution and bank is a global financial institutions. Credit union is a non-profit organization whereas the bank is a profit organization. In credit union membership is limited to local community members or a local employee union. Membership to a bank is global in nature; anybody with valid identification can open an account in a bank.

            In ‘Credit Union Vs Bank' comparison they are different in all aspects except that both are financial institutions. The differences are listed below:

                        Type of Financial Institution

                                    Bank – Bank is a private organization. Its main purpose is to earn money by providing financial services to global community

                                    Credit Union – It is a cooperative financial institution. Its purpose is to provide financial services to its local members. The profit it earns is for the cooperative members. It is designated as non-profit organization.

                        Membership

                        Bank – Bank offers membership to any valid citizen of a state, county globally. Global membership provides the chance to earn more profit for the company.

                        Credit union – Membership is limited to local community, local cooperatives. The membership laws are regulated by a state and or federal financial regulations. It provides best possible services to local entities and shares profits with the members. Thus credit union members are more loyal to their credit union.

                        Power structure

                        Bank – It is private in nature. Stockholders and board members are in power structure with respect to making, changing policies. Board members are chosen; they may not have an account in the bank and may not use the bank services. Voting right depends on the number of shares owned. Board members are paid for their services.

                        Credit Union – It is an organization owned by the members. Each member has equal right. Members select the board members; each member has one voting right. Members participate in changing policies and rules. Board members are volunteers and are not paid employees.

                        Services

                        Bank – Services may be costly because of more overheads. But because of global services overall profit may be more.

                        Credit union – Because of low overhead services may be cheaper.

                        Deposit Insurance

                        Bank – Deposits up to $250000.00 are insured by FDIC (federal deposit Insurance corporation)

                        Credit union – Deposits up to $250000.00 are insured by NCUSIF (National Credit Union Share Insurance Fund). NCUA (Nation credit union Administration), a federal Institution regulates NCUSIF.