Bank vs Credit Union: A Detailed Comparison {{ hubdb_table_rows('promo_codes_and_rates')[17].year}} | PrimeWay Federal Credit Union

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!

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 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.