Credit Unions vs. Banks: How to Decide

What is the main difference between a credit union and a bank?

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

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

• Both credit unions and banks are for-profit.

• Both credit unions and banks are not-for-profit.

Which organization insures deposits at credit unions?

• Federal Deposit Insurance Corp. (FDIC)

• National Credit Union Administration (NCUA)

• Securities and Exchange Commission (SEC)

• Federal Reserve System

What is a common advantage of credit unions over banks?

• Higher interest rates on deposits

• Higher interest rates on loans

• More branches nationwide

• Faster technology adoption

What is a typical disadvantage of banks compared to credit unions?

• More community emphasis

• Lower interest rates on loans

• Fewer branches

• Higher interest rates on loans

What is a common requirement for joining a credit union?

• Having a minimum balance

• Meeting certain work, residential, or occupational requirements

• Paying a high membership fee

• Owning a business

Which type of financial institution is typically quicker to roll out new technology?

• Community banks

• Credit unions

• Regional banks

• National banks

What is a common feature of national banks?

• Emphasis on community

• Higher interest rates on deposits

• Broad ATM and branch networks

• Fewer branches

What should you consider when choosing between a bank and a credit union?

• Only the interest rates

• Only the technology offered

• Interest rates, technology, and branch access

• Only the number of branches