Opening a Checking Account

What is a credit union?

In the world there are two different ways that you can do your banking. You can either go through a Bank or a Credit Union. What’s the difference? Well, a Credit Union is a non – profit organization that are owned by members. They’re Cooperative institutions in which members pool their resources to provide services to other members. While a bank is a for profit organization which is typically owned by shareholders. They provide a wide variety of financial services in a way that’s efficient and that will maximize profits for shareholders. Below is an infographic that shows you some basic differences between the two.

Your choice: Watch the video, skim the article, and analyze the infographic to answer these questions about how banks and credit unions differ.

Choose bank, credit union, or both for each statement below:

1. Must be part of a specific member group to join

credit union

2. Profits are given to shareholders

Bank

3. Offer checking and savings accounts, CDs, loans

Both

4. Deposits are insured up to $250,000

Both

5. Fees tend to be higher

Bank

6. Interest customers earn on deposits tends to be higher

Credit Union

Ready to Open a Checking Account? Now What?

"Opening a Checking Account" Class Work