What Is a Credit Union and How Is It Different from a Bank?
Whether you’re a longtime Service Credit Union member or shopping around for a new financial institution, do you know the real difference between banks and credit unions? Learn what makes credit unions unique and why they may be a better fit for anyone looking to save more and help give back to their community.
What Is a Credit Union?
A credit union is a not-for-profit financial institution owned and operated by its members. Unlike banks, which are owned by shareholders and designed to maximize profit, credit unions exist to serve the best interests of their members. When you open an account, you become a part-owner, giving you a voice in how the credit union is run and access to better financial benefits.
The History of Credit Unions
The credit union movement began in the mid-1800s to provide affordable financial services to everyday people, especially those overlooked by traditional banks. The first credit union was founded in Germany in 1852, and the idea quickly spread to other countries. Credit unions came to North America in the early 1900s, with the first U.S. credit union established in Manchester, New Hampshire, in 1909. Built on the principle of “people helping people,” credit unions have grown into a global movement that still holds true to its cooperative roots: empowering individuals and strengthening communities through member-owned banking.
Why People Choose Credit Unions
If you’re already a member, you’ve likely experienced some of the benefits firsthand. If not, here’s what sets credit unions apart, and why they continue to grow in popularity.
Better Rates and Lower Fees
Because credit unions return profits to their members, we’re able to offer competitive rates on loans, credit cards and mortgages—often lower than what you’d find at traditional banks. Savings accounts, certificates, and money market accounts also tend to offer higher returns. And with fewer fees and lower minimum balance requirements, more of your money stays where it belongs: with you.
Member-First Service
At a credit union, you’re more than just a number. Our service is built around relationships, not transactions. Whether you’re building credit, financing a vehicle, or planning for the future, our team is here to provide personalized support every step of the way.
Many Service Credit Union members tell us they appreciate being treated like individuals, not account holders. We listen, we guide, and we work to earn your trust.
Community Commitment
One of the biggest differences between credit unions and banks is how we invest in our communities. Through sponsorships, charitable partnerships, and financial education programs, credit unions work to build stronger neighborhoods.
At Service Credit Union, we believe that when our communities thrive, our members do, too. That’s why we’re proud to give back to the places where our members live and work.
Convenient Access—Wherever You Are
Some people assume credit unions are limited in terms of access, but that’s far from the case. Service Credit Union members have access to thousands of surcharge-free ATMs and shared branches nationwide through the CO-OP, Allpoint and Dolphin Debit networks. And with our mobile app, online banking, and 24/7 support, managing your money is easy and convenient, no matter where life takes you.
Join the Credit Union Movement
If you’re exploring the idea of joining a credit union, now’s a great time to make the switch. With better rates, more personal service, and a commitment to community, Service Credit Union is here to help you reach your financial goals, whatever they may be.
