Understanding Banks and Credit Unions

The video explains the differences between banks and credit unions, focusing on ownership, profit motives, fees, and decision-making processes. Banks are owned by shareholders and aim for higher profits, often resulting in more fees and higher loan interest rates. Credit unions are owned by members, allowing them to offer more affordable services and involve members in decision-making, ultimately focusing on serving members' financial needs.

Who owns a credit union?

• Its members

• Shareholders

• The government

• Private investors

Why do banks generally have higher fees?

• To offer better services

• To compete with credit unions

• To satisfy shareholder profit demands

• To attract more customers

What is a key financial advantage of credit unions?

• More affordable services for members

• Higher interest rates on loans

• Less focus on customer needs

• More fees for transactions

Who typically makes big decisions in banks?

• The government

• The bank's members

• External parties

• The local community

What does membership in a credit union imply?

• No say in operations

• Higher fees

• Ownership and influence

• Limited financial services