What bank or credit union should you do business with?Bank or Credit Union? First, what is the difference between these financial institutions? A Bank is a society for profit, a corporation created by its shareholders and subjected to government authority of the country where it has its head-office. A Credit Union is a cooperative created for service to its members, not for profit. It is also subjected to government authority where it has its head-office. If you are a member of a Credit Union, at year-end, if the society has a surplus (that is what they call profit), they may decide to payback part of that money to their members. That money is usually divided between borrowers or loanees that may get a rebate on their loan interest rate. Another part goes to the depositors. Do not forget to check service charges. Should you deal with one or the other?Why not deal with both of them and get the best of both worlds! Banks are usually better for higher credit lines and corporate accounts.Credit Unions are more active in smaller personal accounts. They serve their members very effectively in personal mortgage and car loans. Whitch Bank to choose?If you are a small guy without much money in your account, go to the one closer to your home.If you have quite a bit of money to deposit, choose the bigger one that makes the more profit and is best managed. If the corporation makes lots of profit, normally they will be able to payback if you need your money. Spread your deposits between a few of them and do that specifically where law guaranties your deposits. Check the maximum amount guarantied. Witch Credit Union to choose?The one nearest your home. To day, most of the Credit Unions are grouped under federations that control the local offices.There is also a trend to regroup small units into bigger ones as to save on administration costs.People in your area know you better and it should be easier to get a loan if needed. Most Credit Unions as well as Banks offer online or Internet banking .
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