NEW YORK–Under the headline, “Credit unions: What makes them special? How are they different from banks?,” one national publication offered its answers to those two questions. 

“It’s no secret, Americans are big into ownership. Most people agree it’s better to own a home than rent—and that’s what makes credit unions special: A sense of ownership,” reported Fortune. “When you join a credit union, you’re a co-owner of the institution, not simply a user. Plus, credit unions are not-for-profit companies that are focused on serving their members’ needs—meaning you can get higher yields on deposit products and lower interest rates on loans.”

The report quoted Brian Lee, president and CEO of Landings Credit Union in Arizona, as saying credit unions offer consumers a “clear choice to support their local community.”

‘The Big Difference’

After explaining that a credit union offers many of the same products and services as a bank, and also offer federal deposit insurance, Fortune told readers the “big difference is who owns the company: Credit unions are owned by members, while banks are typically owned by corporations or shareholders. Credit unions are not-for-profit, while banks are for-profit. Because of this, banks typically offer lower returns on savings accounts and charge higher rates for lending products.”

Pete Amstutz, SVP-savings and membership at Navy FCU told Fortune its members earn and save an average of $461 per year by doing business with the credit union versus other providers.

The Benefits

According to Fortune, the benefits of credit union membership include”

• Credit unions typically offer better interest rates on their products to members compared to traditional banks.
• Products are likely to be more geared toward community members
• Members can have a say in what they’d like to see and receive more personalized service.
• Members are likely going to get more personalized customer service.

The ‘Downsides

According to Fortune’s report, the “potential downsides” of using a credit union include:

• “You might not meet membership requirements. Many credit unions limit membership to specific regions or classes of people, like veterans or employees of a public university and their family members. “
• “…If you move or travel frequently, a local credit union may not be able to provide you with in-person services when you need them.”

What to Look For

Fortune said that with thousands of credit unions to choose for, the “key things” to look for in a credit union include:

• Making sure any credit union you’re interested in banking with offers all the services you’re looking for. “Beyond deposit accounts, are you interested in credit cards, loan products, or insurance?”
• Shop around for the best rates, as “some credit unions may put more emphasis on savings APYs, while others may prioritize lower interest rates on loans.”
• Check the credit union’s website for its branch and ATM locations. “Most credit unions offer access to a larger ATM network, allowing free transactions when you are away from your credit union. Some also offer to refund ATM fees for out-of-network transactions.”