What are the Biggest Differences Between a Credit Union and Bank?

In a recent blog, we wrote about why so many people are switching from banks to credit unions. Considering credit unions serve over 100 million people in the U.S., there are some real differences between a credit union and bank. And if you’re not a member yet, the lower fees and friendly customer service may convince you to apply for credit union membership today. 

Credit Unions vs. Banks 

A credit union is a not-for-profit owned by members, while a bank is a private for-profit institution. Though they have different business models, both institutions have the same goals—to keep your money safe and in one place, offer different types of loans, and issue debit and credit cards for necessary transactions. 

At a bank, there’s no membership required, which means there are fewer incentives to join. When you’re a member of a credit union, you’ll get exceptional customer service, better rates, fewer fees, and a local community that cares about your dollar. 

But you can’t just become a member of any credit union. For example, to become a DEXSTA member you have to be eligible by living, working, attending school, or worshipping in a county that DEXSTA serves. If you don’t personally do any of those things, then you must have a family member who does.

Lower Fees. More Savings. 

According to Investopedia, banks usually offer lower savings rates with higher fees, while credit unions offer higher savings rates and lower fees. At DEXSTA, it’s no different. So if you’re deciding between a credit union or bank, choose the one that makes the most sense for your wallet. 

DEXSTA offers several share savings accounts that are member exclusive. That means you have more opportunities to save as a DEXSTA member than at a bank where they typically offer more traditional savings accounts.

Let’s Get Personal

But a significant distinction between a credit union and a bank is the hands-on, personalized service. When you work with a bank, you’re just another account number in the system. But when you work with a credit union, you’re more than just a number—you’re a member of something more. And DEXSTA’s credit union dividends, savings, and exceptional customer service are proof of that. 

No matter what you’re looking for, DEXSTA provides members with tailored financial solutions that suit your lifestyle. 

Become a DEXSTA Member Today

You can apply online or stop by one of our branches for a membership application. And when you do, make sure you have these three essential items:

• $5.00 deposit
• Two forms of ID
• Proof of address

If you’re still wondering about our services or would like to speak with a DEXSTA representative, you can give us a call anytime between regular business hours.