Navigating the Differences Between Banks and Credit Unions

Why is it not advisable to store money in a mattress?

• It's unsafe and does not earn interest.

• Banks offer better security.

• It's illegal.

• It's considered outdated.

What year did the first bank open in the US?

• 1820

• 1805

• 1791

• 1776

What is the primary way banks make money?

• Selling financial products

• Investing in the stock market

• Charging account fees

• Interest from loans

What is a significant advantage of national banks?

• Low-interest rates

• Membership requirements

• Large networks of branches and ATMs

• Personalized services

What type of banks partner with FDIC insured banks to offer services?

• Community banks

• International banks

• Neo banks

• Regional banks

What is a unique feature of neo banks?

• They have their own banking license

• They operate internationally only

• They partner with FDIC insured banks

• They do not offer online banking

What is a key difference between banks and credit unions?

• Credit unions are for-profit, banks are not.

• Banks are federally insured, credit unions are not.

• Banks offer loans, credit unions do not.

• Credit unions are member-owned, banks are investor-owned.

What is a common requirement to join a credit union?

• An investment portfolio

• A high credit score

• Membership in a specific community

• A large initial deposit

What insurance do credit unions have?

• FDIC

• None

• SIPC

• NCUA

What is a potential downside of smaller credit unions?

• Higher interest rates on loans

• Limited range of services

• More international branches

• Higher membership fees