Learn The Difference Between Banks and Credit Unions

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When I was younger, I didn’t always make the best decisions. I didn’t pay bills on time, I misused credit cards, and I had horrible money management skills. It wasn’t until my bank had close on me in my town. Believe it or not I was banking with some bank that was at my local Walmart. I pick that bank because I had some friends working there. But when my bank closed, I was just keeping my money at home.

Once I started understanding how to use my money and credit, that’s when I look into picking a new bank. When I thought I had found my new bank, I found problems. I went to get a money order from the banks it was like 2 bucks. When i could go to the store and get one for like 75 cents. So, I left there needless to say. After a while I need a money and stopped by a credit union around my house. They told me I needed to be a member in order to get one. Which made me ask myself what was she talking about. I went to the store and got my money order and did some research on credit unions, let me share with you guys what I learned.

The Similar Services

So, let us start with what they have in common guys before we go into the difference between the. They both offer checking accounts, savings accounts, loans, and credit cards as well. But that’s pretty much the end of their similar services they have between each other. Now we will get into their difference between the two.

Difference

They have some real key differences between them. From the structure of how they work. The way they are owned. And even their overall mission they have at the end of the day. Let’s get into this a little deeper. NO DIDDY! LOL

Banks

With banks they are out to make a profit at the end of the day. And they should be because they have shareholders, they looking to turn a profit as well. That’s way anyone can go open up a bank account if they want to. As long as they meet whatever requirements the bank may have. They are also run by a board who job it is to make sure the bank is making money. Shareholders want the dividends; you can believe that. Banks usually has higher fees as well. And will offer you lower interest rates on deposits. Since banks as bigger they do offer more services to their customers. Like online banking or mobile banking. But you don’t really get that personalized customer service. Banks are insured by (FDIC) up to the legal limit, which is $250,000. Now let’s move on my friends.

Credit Unions

Credit unions are non-profit organizations that owned by their members. Meaning they are not out to just make a dollar. And all their members are the customers. Any profit they make is return to them in one way or another. They do have a board, but everyone gets a vote. Like if you own some stock, and they like you vote on things the company is doing. Needless to say, they offer lower rates on their services.

They also have better terms on their loans as well. They are not as big as banks so the accessibility can be an issue at time. For like ATMs but they usually co-op with other ATM networks. Since they are smaller any everyone is members, you get that personalized customer service my friends. They are also insured as well by (NCUA) up to the same limit of $250,000 as well. That’s pretty much the end of that guys.

Bonus – Crypto Currencies

I know I can’t be the only one out there who keep hearing about all these different kinds of crypto currencies. And hear about everybody making money getting rich with like 3 dollars if you invest now. I was joking about the 3 dollar but that’s how some people make it seems. There always a new one popping up over night that’s suppose to be the next bitcoin. It’s a little irritating because why everyone is telling us to buy no one is telling us exactly what it is and how it works. So I’m here to give my friends the basic breakdown of the mind blowing new thing that has so much value with out actually being anything.

What Is It

What is crypto currency? Crypto currencies is a virtual currency that works off of something called blockchain technology. It was developed so people can make purchases online and make payments. It’s was started in 2013. I know this sounds like some companies you may of heard of like PayPal, cash app, or your credit cards. So what makes crypto currencies different? Is it’s free from any 3rd party interference. So it’s not controlled buy any government like other currencies around. That’s why a crypto purchase will never fail you. There’s no transfer limits, there’s no getting your account hacked, or no issues with the bank.

Pros

  A pros for crypto currencies they have little to no transaction fees, there’s no limit to how many transactions you can make, and you also have 24 hour access to your money. I can keep going with the pros like,  there’s no delay or extra charge when making international transportation and the best part is there no paper trails. Just make a digital wallet with and account and there you have it everything that make it different from other currencies and other online payments options.

Block Chain

  Now you may be asking yourself how is this possible with no control of an external authority? This is when the block chain technology goes into play. Blockchain works like footprints of transportation to whom. Making it hack proof.

  There you have it my friends’ crypto currencies in a nutshell. It’s a way to buy things with no interference at all. It’s like the digital hand to hand if you will. Some people feel this will change the world for the better and others feel it will change it for the worst. I guess it’s just how you look at it. Some people may make some money selling crypto currencies and others will lose money. I wouldn’t invest everything I have in it, but I might do a little something with it. I know a lot of people are using it nowadays like a savings account. As always do your research my friends before you do anything.

Summary

At the end of the day it’s up to you which one you want to do business with. I just wanted to layout the different between the two for you all out there who may not have known the difference between the two. If you stuck around to get to the summary, you also got a little something extra for your time. I hope you guys enjoyed that. As always thanks for your time and the visit. Please tell your friends and family about the blog if you feel it could help them. See you guys’ next time. And leave in the comments which one you like the most or are using.