Hi friends. Thanks for downloading the Money Girl Podcast. I'm Laura Adams the author of Money Girls Smart Moves to Grow Rich a fun guide to personal finance that tells you what you really need to know about money

without bogging you down with what you don't. Are you confused about the

difference between a bank and a credit union? They have a lot in common, but they also have some major differences.

Today we'll cover their benefits, so you know which type of institution is better for your personal finances.

Now let's talk about banks and credit unions.

The fundamental difference between the two is that banks are for-profit businesses, and

credit unions are non-profit financial cooperatives.

That's a fancy way of saying that credit unions are owned by their customers or members,

and banks are owned by outside investors who may or may not deposit money there.

Therefore, banks are in business to please their investors, which

can be at odds with what's best for customers. But credit unions have the sole responsibility to serve their members.

That's why credit unions are known for giving high levels of customer service

and have been growing in popularity.

When it comes to joining a credit union, there's a catch. They aren't legally

allowed to serve the general public like banks do. Membership in a credit

union must be limited to define groups, such as particular industries, employers,

organizations, or those who live and work in a certain community.

However, don't assume that just because you're self-employed

or don't work for the government that you can't join a credit union.

Some make it really easy to join by offering eligibility to anyone who is a member of a particular

charitable organization. Membership in the charitable organization could be as simple as paying

a one-time fee of $10 or $15.

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