There exists a number of financial institutions that are designed to help people with their money, investments, and the like. Among these are banks and credit unions, which the likes of Robert Jain can attest. However, you may look at these specific types of organizations and believe that they are exactly the same. Despite what you may think, there are numerous factors that set them apart. Here are just a few that are worth covering.
When it comes to the differences between banks and credit unions - and names such as Bob Jain will agree - ownership is one of the most noticeable. Credit unions are designed in such a way that their members, not customers, own their own separate unions. Banks have customers, which don't make them much different from retailers in this regard. This is just one of the many points that contrasts these two types of organizations.
Another way that banks and credit unions differ is in the people that they assist. Banks, as you may already know, are open to the public. What this means is that, if you desired, you can simply walk into a bank and request to open a checking account. Credit unions serve their members, however, which means that you would require a membership to be assisted. In short, they aren't open to the public.
The types of services that banks and credit unions offer are different, too. Anyone that has been a long-time client of a bank will tell you that there are numerous services they can take advantage of, even outside of the accounts they're able to open. Credit unions, on the other hand, seem to focus on particular services, thereby playing less to the idea of quantity. This is another major difference that many people tend to overlook.
To wrap things up, banks work for profit while credit unions do not. The latter shouldn't come as a major surprise, not only due to the fact that unions are smaller institutions but they are run by the members themselves. Banks, on the other hand, are managed by paid members and bolstered by shareholders. With this in mind, it makes sense that banks would work for a profit to keep all parties on board.
When it comes to the differences between banks and credit unions - and names such as Bob Jain will agree - ownership is one of the most noticeable. Credit unions are designed in such a way that their members, not customers, own their own separate unions. Banks have customers, which don't make them much different from retailers in this regard. This is just one of the many points that contrasts these two types of organizations.
Another way that banks and credit unions differ is in the people that they assist. Banks, as you may already know, are open to the public. What this means is that, if you desired, you can simply walk into a bank and request to open a checking account. Credit unions serve their members, however, which means that you would require a membership to be assisted. In short, they aren't open to the public.
The types of services that banks and credit unions offer are different, too. Anyone that has been a long-time client of a bank will tell you that there are numerous services they can take advantage of, even outside of the accounts they're able to open. Credit unions, on the other hand, seem to focus on particular services, thereby playing less to the idea of quantity. This is another major difference that many people tend to overlook.
To wrap things up, banks work for profit while credit unions do not. The latter shouldn't come as a major surprise, not only due to the fact that unions are smaller institutions but they are run by the members themselves. Banks, on the other hand, are managed by paid members and bolstered by shareholders. With this in mind, it makes sense that banks would work for a profit to keep all parties on board.
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