Credit Unions vs Banks | Greater Nevada Credit Union

Though they offer similar services, the main differences between a credit union and a bank are their profit motives and their cooperative ownership models. Banks are typically for-profit institutions, while credit unions are not-for-profits and distribute their profits to members in the form of offering higher interest rates on savings, lower rates on loans, and lower or waived fees. Credit Unions, like Greater Nevada, use their funds to invest in services and initiatives that help their member-owners. Joining a credit union means joining a community of your neighbors–a community that supports you in return.

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What’s a Credit Union?

A credit union is a not-for-profit financial institution. Credit unions operate around the principle of returning profits to members, often in the form of better products, services, and programs. They are cooperative, meaning they’re owned by members, and they’re also federally insured.

Credit unions typically have easy-to-meet membership requirements. Some of the most common perks associated with membership include better rates on loans and savings accounts, as well as possibly fewer and lower fees. Most credit unions offer the same financial services as traditional banks.

What Makes Credit Unions Different Than Banks

Though profit (and how it’s used) is the key difference between banks and credit unions, there are other important factors that distinguish these financial institutions. We’ve listed the most relevant ones below to help you understand the benefits of each.

Since 1949, Greater Nevada Credit Union has responded to the needs of our members and the communities we serve. At GNCU, you are more than a member, you are a part owner. Credit unions are owned and controlled by the people, or members, who use their services. Your vote counts. A volunteer Board of Directors is elected by our members to manage the credit union and help influence the services we offer.

Not-For-Profit, For-Profit

We discussed this earlier, but profit is the main factor in the credit union vs bank debate. Credit unions are not-for-profit institutions that often offer higher interest rates on savings accounts, lower interest rates on loans, and possibly fewer and lower fees, to name a few benefits.

Eligibility Requirements

To join a credit union means you will have to meet the membership requirements. Greater Nevada Credit Union, for example, requires personal members must either work or live in Nevada, or have an immediate family member who does. Commercial membership requires the business to be registered and have a physical location in Nevada, or have an owner who lives in the state. If these requirements are met, then all that’s needed is a one-time membership fee of $5 and a minimum $5 deposit into the new Share Savings account to become a member. Learn more about joining and membership here.

Owned by Members

Credit unions are owned by members–that is, they are cooperative financial institutions. You’ll have the power to elect members to the Board of Directors, who are also members. Regardless of the types of accounts or amounts in them, all members are treated equally.

Member-Focused

Credit unions work for our members. This results in a more personalized experience for the members. Greater Nevada Credit Union makes it a priority to help members with their individual needs. Furthermore, since there are no private investors in credit unions and just the people, this means, if you become a member, your financial success drives us. This is our passion to help you, and more people Live Greater.

A credit union is rooted and active in the community. At Greater Nevada we believe this allows us to know the people and the needs in the areas we serve better than a mega-bank. This allows more people to access the financial products and services they need to help achieve their own individual goals.

Financial Literacy Resources

Looking to improve your credit score? Interested in learning about personal finance? A credit union can help. Sharing financial wellness with their communities is what drives credit unions. Because of that mission, we offer several free financial resources to help members navigate life’s biggest financial events: saving, budgeting, estate planning, retirement, and much more.

Similar Services

Both credit unions and banks offer the same selection of financial products and services: checking and savings accounts, retirement accounts, loans, and credit card offers, plus much more. Find out more about Greater Nevada Credit Union’s personal banking services here or contact us for more information about commercial services, mortgages, investments, and other benefits our credit union offers.

Federally Insured

Most credit unions and banks are both federally insured. Some credit unions can opt for private insurance. Greater Nevada Credit Union (GNCU) is insured through the National Credit Union Administration (NCUA) instead of the Federal Deposit Insurance Corporation (FDIC). The NCUA is a government agency that protects credit union members’ share accounts in the event their credit union fails, just like the FDIC protects customer deposits at a bank. This means as a member of GNCU, your accounts are insured for up to $250,000 through the NCUA.

Branch Locations

Because credit unions are typically smaller financial institutions than the traditional big banks, they’ve joined forces to offer members more convenient access to services through the CO-OP Shared Branch network. That means you can visit and handle most banking needs at more than 5,600 branches at partner credit unions throughout all 50 states when you travel or move house. You can also have access to over 30,000 fee-free ATMs through the CO-OP Shared ATM network. See all those locations here.

Online Banking

In an increasingly digital world, it’s important that you’re able to access your money from anywhere. Credit unions and banks both offer online banking services (as well as mobile banking from our handy app). Learn more about what features are included in our Greater Nevada Digital Banking system here.

Banking Made Simple

Manage your money with convenience and flexibility. Greater Nevada Credit Union makes financial wellness second nature with a full range of services, from personal and commercial banking to lending and mortgages. Open a checking account, check on your savings account, or explore credit cards–it all happens here.

Discover the support that comes from banking with a community of your neighbors. Contact us today to learn more about membership, open an account, or learn more about our cooperative.