The Credit Union Difference: What Sets Us Apart from Banks
Looking for a better way to bank? Lower fees, better rates and personalized service could be closer than you think.
Published Tuesday, July 8, 2025 to Advice
If you’ve ever searched for low bank fees, best checking accounts, or where to get a car loan, you’ve likely seen a familiar term in the results: credit union.
At first glance, banks and credit unions seem to offer the same services. But there’s one big difference: credit unions are not-for-profit financial cooperatives—and that makes all the difference in how they treat you.
What does that mean?
Unlike banks, which are owned by shareholders, credit unions are owned by their members—that means you. Every person who opens an account is a part-owner, not just a customer.
This member-ownership results in:
- Lower loan rates
- Higher savings returns
- Fewer fees
- Personalized financial guidance
Let’s get into it!
What Do Credit Unions Offer?
For the most part, credit unions offer many of the same products and services as banks:
- Free checking and savings accounts
- Youth and teen accounts
- Auto loans, personal loans and mortgages
- Credit cards
- IRA and retirement accounts
- Business accounts and loans
There’s not much a bank can offer that a credit union does not, and vice versa.
Because of the not-for-profit status of credit unions, they are also able to offer some products and services that banks typically don’t. These may include special loans and accounts that serve low-income families.
Banks vs. Credit Unions: A Quick Comparison
| Credit Union | Bank |
|---|---|
| Owned by the people who use its products and services (members) | Owned by shareholders |
| Not-for-profit cooperative structure | For-profit |
| Earnings returned to members through better rates and lower fees | Profits paid to shareholders |
| Members democratically elect a Board of Directors | Led by shareholders who collect the bank's profits |
Can Anyone Join a Credit Union?
While credit unions require eligibility, many community credit unions like Veridian offer accessible eligibility requirements.
Some credit unions reserve their membership for employees of certain companies or workers in certain industries. And some serve specific communities and regions.
In our earliest days, back in the 1930s, our field of membership was John Deere employees and their families. But, today, Veridian Credit Union is open to anybody and has easy eligibility requirements.
Check it out: see the benefits of membership at Veridian Credit Union.
The Benefits of Joining a Credit Union
The cooperative structure comes with many benefits that you may not see at a bank.
Better Rates and Lower Fees
Since credit unions are cooperatively owned by members, earnings are returned to you. This allows credit unions to offer lower fees and better rates on accounts and loans.
In 2024...
An Emphasis on Community
Community has always been a major part of the credit union movement. Credit unions are formed by communities who pool their money together and create the financial products and services they all need.
At Veridian, for example, we go beyond simply donating to important causes. You’ll find us out and about, sponsoring events that provide family fun and lift up our communities.
Personalized Service
Many credit unions, including Veridian, are available nationwide. Since credit unions are not-for-profit cooperatives, they're empowered to prioritize service to members and communities above all else.
Plus, the people that work at credit unions are just like you. They are members of your community and want you all to succeed.
Your Money is Safe
Surely, you’ve heard that little statement at the end of bank commercials: “Federally insured by FDIC”.
Credit union members are federally insured as well. The National Credit Union Administration (NCUA) insures every member up to $250,000 per depositor.
So, whether your money is in a savings account or a certificate of deposit (CD), you can rest assured that your money is safe.
You Have a Voice
As a credit union member, you have the opportunity to vote for board members to govern the credit union. In other words, you have a say in the decisions being made at the highest level of the credit union.
You can also run to serve on the board of directors at your credit union. When you serve on the board of directors, you get to be in the room and be a part of the final say when big decisions are made.
Many credit unions also have non-voting associate directors that have a voice in their direction as well.
Final Thoughts: Get More from Your Credit Union
Banks and credit unions offer many similar products and services. But the structure of each type of financial institution is what sets them apart.
If you’re ready to experience the credit union difference, check out Veridian Credit Union today. You can join online in minutes.