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Credit Union |
Bank |
| Organization |
Not-For-profit cooperative |
For-profit cooperative |
| Primary Objective |
To meet member / owner needs |
To maximize profit |
| Ownership |
All members who are users of service |
Stockholders who may or may not be customers or users |
| Directors |
Volunteers |
Paid Directors |
| Decision making |
Member-controlled one vote per member |
Only stock holders vote,one vote per share of stock |
| Distribution of Net Income |
Dividends issued to members and used for capital developments, additional allocations, equipments, etc. |
Dividends issued only to stock holders |
| Community Links |
Owners/Leaders reside or have an interest in the community. |
Owners/Leaders may live anywhere in the world:head-quaters could be anywhere in the U.S. |
| Rates/Products |
Offer better overall rates and lower fees due to the nature of the organization and its dividends distribution |
Rates and Fees may not be favorable
because of for-profit status. |
| Generation of Capital |
Generated only through income stream. |
Generated through income stream and/or insurance of stock. |
| Who Benefits |
Members/owners |
Stockholders |
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