Both banks and credit unions offer checking, savings, cards and loans. The difference is who owns them and how that shapes fees and service.
| Credit union | Bank | |
|---|---|---|
| Owned by | Members | Shareholders |
| Fees | Often lower | Varies; can be higher |
| Loan rates | Often lower | Varies |
| Branches and ATMs | Fewer, but shared networks | More, especially national banks |
| Membership | Based on location, employer, school or group | Open to anyone |
| Deposit insurance | NCUA | FDIC |
Why newcomers like credit unions
Some credit unions are more flexible with members who have no US credit history, especially for car loans and credit-builder products. University and employer credit unions are easy to join.
Why newcomers pick banks
Large banks may open accounts before you have an SSN, have branches in most cities and offer polished apps. International wires can also be easier.
A common approach
Open a checking account at a large bank for day-to-day use, then join a credit union for a car loan or savings.
