How Do Rates and Fees Compare?
Credit unions generally offer higher savings APYs and lower loan interest rates than banks because they operate as nonprofits. They also tend to charge fewer and lower fees for services like overdrafts and account maintenance. Banks, however, may offer promotional rates on [high-yield savings accounts](/glossary/high-yield-savings-account) and CDs that rival or beat credit union offerings.
What About Technology and Convenience?
Large banks typically invest more in mobile banking apps, ATM networks, and digital tools. Credit unions have closed this gap through shared branching networks (giving members access to thousands of locations) and partnerships with fintech providers. However, the largest banks still generally offer more polished digital experiences and broader international access.
Is My Money Equally Safe?
Yes. Bank deposits are insured by the FDIC up to $250,000 per depositor. Credit union deposits are insured by the NCUA (National Credit Union Administration) for the same amount. Both are backed by the full faith and credit of the U.S. government, so your money is equally protected at either institution.
Frequently asked questions
Can anyone join a credit union?
Most credit unions have eligibility requirements based on employer, location, or membership in a group. However, many have broadened their fields of membership so widely that nearly anyone can qualify. Some require only a small donation to an affiliated nonprofit to join.
Can I have accounts at both a bank and a credit union?
Absolutely. Many people keep a checking account at a large bank for convenience and ATM access while maintaining savings or loan accounts at a credit union for better rates. There is no rule against holding accounts at multiple financial institutions.