in simplest terms...

[stretch]

what is the difference between a Credit Union and a Bank?

[to21]

Credit Unions are ran by members, who can be nominated/voted in. A bank will have it's own exec, stock holders making high level decisions.

[peewee's lovechild]

Credit Unions are ran by members, who can be nominated/voted in. A bank will have it's own exec, stock holders making high level decisions.

Credit Unions operate in the same manner. They have a board of directors and a CEO who runs the union.

Also, CUs aren't backed by the FDIC.

[Thunder Dan]

credit union is a bunch of people putting their money together to operate as a bank (for accounts and loans)..it differs from a bank b/c a bank tries to make a profit, where credit unions work normally to give members the best possible rates

[to21]

Credit Unions operate in the same manner. They have a board of directors and a CEO who runs the union.

Also, CUs aren't backed by the FDIC.True.....I got what you sayn'.....I should have said credit unions = members, banks = stockholders.

I was breaking into it's simplest terms. If I said they operate the same, they there's no real difference.

[mrsmaalox]

Credit Unions operate in the same manner. They have a board of directors and a CEO who runs the union.

Also, CUs aren't backed by the FDIC.

But they are backed by the NCUA, which is similar

[peewee's lovechild]

But they are backed by the NCUA, which is similar

Sort of, but they can only gaurantee so much money. And, it's a lot less than the FDIC can.

[peewee's lovechild]

credit union is a bunch of people putting their money together to operate as a bank (for accounts and loans)..it differs from a bank b/c a bank tries to make a profit, where credit unions work normally to give members the best possible rates

Don't be mistaken, they're out to make as much profit as the banks.

It's true that they offer better rates than most banks, but that doesn't mean that they don't seek the same profit margins as a bank would.

[mrsmaalox]

Sort of, but they can only gaurantee so much money. And, it's a lot less than the FDIC can.

Up to like $100,000 I believe? But you know either way, the fed will bail em out if necessary!

[peewee's lovechild]

Up to like $100,000 I believe? But you know either way, the fed will bail em out if necessary!

Not really.

The reason CUs came about was because of the Savings & Loans failure. They're basically an offshoot of all that mess.

They don't have as much clout as the banks do, so the fed doesn't care too much about them.

[Thunder Dan]

Don't be mistaken, they're out to make as much profit as the banks.

It's true that they offer better rates than most banks, but that doesn't mean that they don't seek the same profit margins as a bank would.

I didn't mean they are a non profit, I mean they operate like a local mom-pop store where a smaller profit is suitable to sustain a business.

[peewee's lovechild]

I didn't mean they are a non profit, I mean they operate like a local mom-pop store where a smaller profit is suitable to sustain a business.

Not really.

I co-managed a local CU back home and, belive me, they make quite a bit of money. That was a small CU. The CUs here in SA make a shit load of money.

It's not done merely to "sustain" their business. People who run the joints make quite a bit of money.

There is nothing mom & pop about CUs.

[CavsSuperFan]

There is a huge difference between banks & CU's...…

Today’s banking industry makes billions off of petty charges, late fees, made up penalties & exorbitant interest rates…The banking industry no longer makes money off of sound investments…

CU’s have much more lenient policies, lower interest rates for loans, higher interest rates for CD investments…And your money is insured…One would save thousands if they eliminated banks & only did business with reputable credit unions…

[peewee's lovechild]

There is a huge difference between banks & CU's...…

Today’s banking industry makes billions off of petty charges, late fees, made up penalties & exorbitant interest rates…The banking industry no longer makes money off of sound investments…

CU’s have much more lenient policies, lower interest rates for loans, higher interest rates for CD investments…And your money is insured…One would save thousands if they eliminated banks & only did business with reputable credit unions…

Your money is insured in banks as well. And, they are insured in greater quantities than CUs.

As for fees, take a look, CUs fees are comperable to banks.

Much has changed.

[Thunder Dan]

Not really.

I co-managed a local CU back home and, belive me, they make quite a bit of money. That was a small CU. The CUs here in SA make a shit load of money.

It's not done merely to "sustain" their business. People who run the joints make quite a bit of money.

There is nothing mom & pop about CUs.

oh I must be mistaken then.

I have swiss accounts and accounts in the Caymens so I don't worry about little things like Credit Unions. I get paid each week in gold bars

[peewee's lovechild]

oh I must be mistaken then.

I have swiss accounts and accounts in the Caymens so I don't worry about little things like Credit Unions. I get paid each week in gold bars

You should hire me to be your accountant.

Seriously.

[CavsSuperFan]

The Banking industry is under investigation by congress for ripping off their customers…CU's are far more consumer friendly..."NO CONTEST"...

[peewee's lovechild]

The Banking industry is under investigation by congress for ripping off their customers…CU's are far more consumer friendly..."NO CONTEST"...

Get back to me when congress does anything about it.

Anyway, I'm not saying that they're not "consumer friendly". I'm saying that they are after the same profit margins as banks. And, they do it in similar ways.

[RandomGuy]

Get back to me when congress does anything about it.

Anyway, I'm not saying that they're not "consumer friendly". I'm saying that they are after the same profit margins as banks. And, they do it in similar ways.

That might be an interesting side project sometime.

Compare the financial statements of a CU and a bank.

My strong suspicion is that you are wrong on this one. The average CU would be unable to survive by charging the same high-ass fees that banks do.

[Thunder Dan]

You should hire me to be your accountant.

Seriously.

sorry man I got a couple guys overlooking my account at Bear Stearns. Everyone knows they are the best at keeping things efficient and profitable

[peewee's lovechild]

That might be an interesting side project sometime.

Compare the financial statements of a CU and a bank.

My strong suspicion is that you are wrong on this one. The average CU would be unable to survive by charging the same high-ass fees that banks do.

They don't post their fees, which should be a sign, but these two (http://www.ssfcu.org/) (http://www.sacu.com/) offer the exact same thing banks do.

[peewee's lovechild]

http://www.sacfcu.org/fees.php

Check those fees.

They're similar to bank fees.

[peewee's lovechild]

And this one:

http://www.sjcusatx.com/asp/cufees.asp

[peewee's lovechild]

So, they operate like banks do.

[Johnny_Blaze_47]

This thread has long surpassed my definition of simplicity.

[peewee's lovechild]

This thread has long surpassed my definition of simplicity.

:lmao