
Credit Union vs Bank: Making the Right Choice
Understanding the differences between credit unions and banks is important for making smart financial decisions.
Ownership Structure and Profit Objectives
Credit unions are not-for-profit groups. They are owned and run by their members. Every member gets the same vote when choosing the board of directors. This does not depend on how much money they have in their accounts. They share the profits by giving members lower interest rates on loans, higher interest rates on savings, fewer fees and better services.
On the other hand, banks are for-profit businesses. Their main goal is to make money for their shareholders. They do this by lending out money at high interest rates, which is more than what they pay on deposits. Banks are important for the economy. They help provide credit to people and businesses, which helps the economy grow and develop.
Membership and Account Opening Criteria
Credit unions have membership rules known as their "field of membership." This field shows who can join, usually based on things like job, location or being part of certain groups. This approach helps create a close community feeling and shared responsibility.
There are no special membership rules. You just need to follow the usual steps to open an account, like giving a valid ID and meeting local residency rules. This easy access is very appealing to many people.
Analyzing the Key Differences Between Credit Unions and Banks
Want to open a checking account but not sure where to put your money? You have two main choices: banks or credit unions.
Most people know about regular banks - they're everywhere. But credit unions might give you a better deal. Why? Because credit unions don't try to make money off you like banks do. Instead, they try to help their members save money.
Here's what makes credit unions different:
- They usually charge less money for their services
- They often pay you more interest on the money you keep with them
- They focus on helping people in your area, not making big profits
Think of it this way: banks are like businesses trying to make money, while credit unions are more like community groups that help their members manage their money better.
Many people pick credit unions because they save money and get treated better. But before you decide, think about what matters most to you - paying less in fees, earning more on your savings or getting friendly service when you need help.
One important thing to know: Both banks and credit unions keep your money safe. The government protects up to $250,000 of your money in both places. For banks, this protection comes from the FDIC and for credit unions, it comes from the NCUA. So your money is safe either way!
Criteria | Credit Union | Bank | Winner |
---|---|---|---|
Fees | Lower fees for account maintenance, ATM use and other services. | Generally, higher fees for account maintenance, ATM use and other services. | Credit Union |
Interest Rates on Deposits | Often offer higher interest rates on checking and savings accounts. | Typically offer lower interest rates on checking and savings accounts. | Credit Union |
Customer Service | Personalized service with a focus on member satisfaction. | Service can be more impersonal; and focused on serving a larger number of customers. | Credit Union |
Loan Approval | More flexible lending criteria; potentially easier for members to get approved. | Stricter lending criteria; may make loan approval more challenging for some. | Credit Union |
Loan Rates | Lower rates on loans and credit cards due to not-for-profit status. | Higher rates on loans and credit cards to maximize profits. | Credit Union |
ATM Network Access | It depends on the Credit Union you choose. | Typically extensive ATM networks with free access. | Depends (Availability and convenience of ATM access can vary by Credit Union.) PrimeWay Federal Credit Union offers access to over 55,000 No-Fee ATMs |
Online Banking | It depends on the Credit Union you choose. | Generally offer comprehensive online banking services. | Depends (The quality of online banking services can vary significantly among Credit Unions.) PrimeWay Federal Credit Union excels in Houston's online banking |
Operational Philosophy | Not-for-profit model; profits returned to members in the form of better rates and services. | For-profit model; profits distributed to shareholders. | Credit Union |
Insight:
PrimeWay Federal Credit Union in Houston gives you lots of helpful ways to handle your money online. Here's what you can do:
- Use your computer or phone to check your money and pay bills
- Send money to friends and family using Zelle®
- Use a debit card to buy things
- Check your credit score using something called Savvy Money
- Save extra money easily - when you buy stuff, they'll round up to the next dollar and put that spare change in your savings
Need cash? You won't have to pay extra fees to get it. PrimeWay lets you use ATMs from a group called Allpoint. There are over 55,000 of these ATMs all over the world that you can use for free.
Best Checking Accounts in Houston: PrimeWay Federal Credit Union vs. Competitors
PrimeWay Federal Credit Union distinguishes itself as a premier financial institution in Houston, offering unparalleled checking account services. Catering to the diverse financial needs of Houston's residents, PrimeWay presents a variety of checking account options, coupled with outstanding customer support, positioning itself as the go-to choice for banking in the city.
Compare PrimeWay's Best Checking Account with Other Banks
PrimeWay's Best Checking |
Chase |
Bank of America |
Wells Fargo |
Capital One |
|
---|---|---|---|---|---|
Debit Card |
✓ |
✓ |
✓ |
✓ |
✓ |
Monthly Service Fee Waiver Through Debit Card Swipes |
✓ |
x |
x |
x |
x |
Access to over 55,000 NO-FEE ATMs Worldwide |
✓ |
x |
x |
x |
✓ |
24/7 Mobile Banking |
✓ |
✓ |
✓ |
✓ |
✓ |
Send and Receive Money with Zelle® |
✓ |
✓ |
✓ |
✓ |
✓ |
ID Fraud & Theft Coverage with Dark Web Monitoring¹ |
✓ |
x |
x |
x |
x |
Get Paid up to 2 Days Early with Direct Deposit* |
✓ |
x |
x |
✓ |
✓ |
High Yield Dividends - Up to 2.00% APY✝ |
✓ |
x |
x |
x |
x |
Mobile Phone Protection² |
✓ |
x |
x |
x |
x |
Telehealth³ (Online Doctor Visits for you and your immediate family.) |
✓ |
x |
x |
x |
x |
Roadside Assistance² |
✓ |
x |
x |
x |
x |
Rideshare Protection² |
✓ |
x |
x |
x |
x |
Travel and Leisure Discounts² |
✓ |
x |
x |
x |
x |
Shopping Rewards™ |
✓ |
x |
x |
x |
x |
Free Notary Service |
✓ |
x |
x |
x |
x |
Positive Change (Round Up Savings) |
✓ |
x |
x |
x |
x |
Financial Wellness 360° |
✓ |
x |
x |
x |
x |
Data from financial websites as of January 2024; subject to change. Please verify with institutions.4
PrimeWay has different checking accounts to fit what members need. Members can pick one that's free every month or choose one that pays extra money for keeping cash at PrimeWay.

Why Settle for Less When You Can Have the Best?
PrimeWay's Best Checking Account isn't just an upgrade; it's a revolution in personal finance.
Are You Overpaying at Your Bank? Credit Unions vs. Banks Explained
Many people stick with banks because they believe they offer better services. The reality? Credit unions can match or even surpass banks in many areas.
"Banks Have More ATMs"
- Most credit unions:
- Belong to shared ATM networks
- Refund ATM fees
- Have 30,000+ free ATMs nationwide
- Let you use other credit union branches
"Banks Have Better Technology"
- Credit unions now offer:
- Mobile check deposit
- Online bill pay
- Mobile apps
- Digital wallets
- Person-to-person payments
- Online loan applications
"Banks Are More Convenient"
- Modern credit unions provide:
- 24/7 online banking
- Nationwide service
- Shared branching
- Mobile banking
- Phone support
- Online account opening
What Credit Unions Do Better
Credit unions focus on giving back to their members, offering better rates, lower fees, and personal service.
- Better Loan Rates
- Car loans: 1-2% lower
- Personal loans: 2-3% lower
- Credit cards: 2-4% lower APR
- Mortgages: Often 0.25-0.5% lower
- Higher Savings Rates
- Regular savings: 5-10x higher interest
- Certificates (CDs): Usually better rates
- Money market accounts: Better returns
- Special savings programs
- Lower Fees
- Often no monthly fees
- Lower overdraft fees
- Free checking common
- Less nickel-and-diming
- Better Service
- Treat you like an owner (because you are)
- Know your name
- Help find better deals
- Work with you when times are tough
Real Money Savings with Credit Unions
Switching to a credit union can save you real money every year. Here’s how the numbers add up:
Monthly Fees:
- Big bank checking: $12-15
- Credit union checking: Usually $0
- Yearly savings: $144-180
ATM Fees:
- Big bank out-of-network: $3-5 per use
- Credit union: Usually refunded
- Yearly savings (2x monthly): $72-120
Overdraft Fees:
- Bank fee: $35-40
- PrimeWay Credit union fee: $0
- Savings per incident: $35-40
Loan Example:
$25,000 car loan for 5 years:
- Bank rate: 6.5%
- Credit union rate: 4.5%
- Monthly savings: $26 | Total savings: $1,560
How to Switch to a Credit Union
Switching to a credit union is simple and can make a big difference in your finances.
Step 1: Find a Credit Union
You can join through:
- Where you work
- Where you live
- Family connections
- Organizations you belong to
- Some are open to everyone
Step 2: Open Accounts
Bring:
- Photo ID
- Social Security number
- Proof of address
- Small deposit ($5-25)
Step 3: Move Your Money
- Open new accounts
- Set up direct deposit
- Move automatic payments
- Transfer savings
- Close old accounts
Bank vs Credit Union: A Detailed Comparison 2025
Discover the benefits of a credit union vs. a bank. This guide compares interest rates, fees, services, and accessibility to help you choose the best financial institution for your needs.
Conclusion
In conclusion, it is important to know the differences between credit unions and banks when you make a financial decision. Credit unions focus on community and member ownership. On the other hand, banks provide more services but may have higher fees. Think about your financial goals when deciding which one to choose. Whether you go for a credit union or a bank, make sure it meets your needs in terms of accessibility, customer service, and financial stability. By considering these points, you can find the best financial partner that fits your needs. If you need help making this choice, just reach out to us for support.
Need Help Deciding Which PrimeWay Checking Is Right for You?
We're here to help! If you're ready to upgrade your checking account, contact PrimeWay today to learn how to get the most from your checking account.
Disclosures:
† This is a variable rate based on the discretion of the Board of Directors. We may change the rate monthly, and there are no limitations on the amount the rate can change.
*Get your paycheck two days early with direct deposit.
¹ Benefits are available to personal checking accounts and their primary accountholder and joint accountholder(s) subject to the terms and conditions for the applicable Benefits. Some Benefits require authentication, registration and/or activation. Benefits are not available to a “signer” on the account who is not an account owner or to businesses, clubs, trusts, organizations and/or churches and their members, or schools and their employees/students.
² Special Program Notes: The descriptions herein are summaries only and do not include all terms, conditions and exclusions of the Benefits described. Please refer to the actual Guide to Benefit and/or insurance documents for complete details of coverage and exclusions. Coverage is provided through the company named in the Guide to Benefit or on the insurance document. Insurance Products are not insured by the NCUA or any Federal Government Agency; not a deposit of or guaranteed by the credit union or any credit union affiliate.
³ Available for the account holder and their spouse/domestic partner and up to six (6) dependent children age 2 and older. This is not insurance.