Credit Unions vs Community Banks?

I would like to know the difference between a "credit union" — not an employer's, mind you, just a local, public one — and a "community bank". I would assume that a community bank is distinguished from a credit union mainly by not being member-owned, offering slightly-better interest &c., and being a for-profit institution. However, I do not know these descriptions and generalization of a "community bank" to be accurate, much less if they are what distinguish a community bank from a credit union, so please correct me if I am mistaken! Thanks in advance, and long live the people's revolution!

1 Answer

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  • Ann
    Lv 7
    5 years ago
    Best Answer

    a credit union is owned by its shareholders-people who deposit money in the CU they charge less interest on loans and fees on accounts, and pay higher interest on deposit accounts. A community bank sounds like a general term for a local bank located in an area. It is for profit so it is a bank. will have higher interest rates on loans, pay less on accounts, charge more fees.

    • Do CUs really pay higher interest on deposit accounts? The man who wrote this article:

      thefinancialbrand.com/18712/are-credit-...

      seems to think otherwise, but then, he may have already been biased in favor of banks. Thanks!

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