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There are various options in terms of financial institutions you can use to manage your financial needs including a credit union or bank. There are many types of banks to choose from, so it's a good idea to decide the best bank fit for your requirements.
For Profit vs. Not-For-Profit
Credit unions are not-for-profit institutions that provide services to its members or account holders. In sharp contrast, however, banks a profit institutions. Typically, banks charge higher fees for the same services of credit union. Credit unions may be able to offer better interest rates on deposits and are more apt to give out a cash rewards to it's members for a good performing month. You can inquire about incentives at your local credit union.
Membership Restricted vs. Open to All
Credit unions can offer membership to people on the basis of particular criteria. For example; the criteria could be where they live, or where they work. Most people will be able to have an affiliation that will allow them to join a local credit union. Banks, on the other hand, have no restrictions with respect to accounts. Anyone with money can open an account with them.
Small Localized feel vs. Large Corporate Feel
Credit unions are typically smaller organizations. They provide a family-like feeling with personalized service to local residents. Banks, have a business-like environment. Due to small hierarchy structure, credit union decision making moves quicker than large banks. Decision makers are likely to be locally situated and more approachable than their peers at local banks. Similarly, credit unions are likely to offer more customized financial advice tailored to the needs of individual members in comparison to financial advice customers would receive at the local bank.
Service Offerings
While credit unions are constantly adding new services and financial products to their portfolio, they are still likely to offer only a subset of services that a full service banks typically offers. You will need to research the specific credit union that you are considering to ensure that they offer the products and services that you require or may require in the future.
ATM Locations
Credit unions are likely to have only a handful of ATMs available in a small geographic footprint since they typically cater to local residents. Larger banks, on the other hand, are likely to have ATMs at multiple locations and even in multiple states nationwide. This means that as a credit union member, you may have to pay third party network fees and ATM fees when you use your ATM card at third party ATMs.
Credit Union or Bank, Which is Better?
