Where your money sits affects the fees you pay and the rates you earn.
Direct answer
A credit union is a member-owned, not-for-profit financial co-operative. A bank is usually a for-profit company owned by shareholders. Credit unions often offer lower fees and fairer loan rates, while banks tend to have more branches, apps and products. Check deposit protection in your country for both.
Key differences
| Credit union | Bank | |
|---|---|---|
| Ownership | Members | Shareholders |
| Aim | Serve members | Make profit |
| Membership | Common bond required | Open to most people |
| Fees and loan rates | Often lower | Vary widely |
| Services and apps | Often more limited | Often broader |
Pros of credit unions
- Lower fees on accounts and loans in many cases.
- Small loans for people with limited credit history.
- Community focus.
Cons
- Fewer branches and ATMs.
- Fewer digital features.
- Membership eligibility rules.
How to choose
Compare fees, interest on savings and loans, convenience and protection. Many people use both.
Where Teyro fits
Teyro's How to Save Money on a Low Income course turns this into short lessons you can play in a few minutes a day. It has 50 lessons, and you can start free.
The bottom line
Choose where your money works hardest and is protected.
This is general education, not personal financial advice.
