Why Does It Matter Where I Keep My Money?

It matters because it is your money, and you should have a say in how it is handled.

As the next generation of leaders, workers, innovators, parents, teachers, and entrepreneurs, building a strong financial foundation is important to our futures and to the future of our nation.

Successful financial futures begin with smart financial decisions that are made early. Some of these decisions are as simple as choosing a financial institution. For example, should I choose a bank or a credit union? 

I went out and found the facts about credit unions and banks


  • Not for profit

  • Member owned

  • Members vote on board of directors, democratically run, not based on money you have in your account

  • Less fees associated with accounts

  • Better rates on loans

  • Shared branching          

  • Surcharge free ATM network     

  • Online services and mobile apps


  • For Profit

  • Bigger, the largest bank in America (JP Morgan Chase) has $2.39 trillion dollars in assets

  • More fees associated with accounts, oftentimes when your account falls below a certain amount of money

  • Owned by shareholders in the company

  • Online services and mobile apps

  • ATMs

It is clear that credit unions and banks can offer similar services. But why choose a credit union?

mycreditunion.gov illustrates the advantages credit unions have over banks:  

"In the United States, credit unions are not-for-profit organizations that exist to serve their members rather than to maximize corporate profits. Like banks, credit unions accept deposits and make loans. But as member-owned institutions, credit unions focus on providing a safe place to save and borrow at reasonable rates. Unlike banks, credit unions return surplus income to their members in the form of dividends.

Favorable Rates and Customer Service

Fees and loan rates at credit unions are usually lower, and interest rates returned to members are usually higher than banks and other for-profit institutions. CUs are democratically operated by members, which allows members an equal say in how the credit union is run, regardless of the money in their account.

Membership Access

Credit unions serve members of modest means. Low-income credit unions provide financial services at reasonable rates in areas that are often underserved by banks.

NCUA Share Insurance Coverage

Federally insured credit unions are regulated by the National Credit Union Administration and backed by the full faith and credit of the U.S. government. Share insurance covers all federally insured credit union accounts up to $250,000."

Take care!