What is the difference between a bank and a credit union as far as a checking account goes?

I was told by family members I should switch to a credit union from my bank because of financial issues. Whats the difference between the two if you open up a checking account with a credit union? Do they give ATM cards?
What is the difference between a bank and a credit union as far as a checking account goes?
The main difference between a checking account at a credit union vs. one at a bank is the terminology. Some credit unions still use the term "share draft account" for their checking accounts. Does your bank return cancelled checks to you? If so, that might be another difference because most credit unions keep the checks and have electronic versions of them available, if you need them. This is becoming more common in the entire industry because of the cost savings.





Functionally, checking accounts at banks and credit unions work the same way, so you won't see much of a difference between the two. Yes, you can get an ATM card for your checking account at a credit union.





Hope this helps. Good luck!
Reply:Credit unions are member based. So you have to have something in common with the founders. Sometimes it's just living in an area. Sometimes it's your job. The main advantage is lower fees for the same products a bank would give (higher interest on deposits, lower interest on loans). The main disadvantage is access. Credit unions generally only have a small number of locations in one geographic area. Banks can be much larger in scale. Big banks like BOA, Chase, etc. are available all over the country. So if you move or are traveling there's always one near by. Some credit unions get around this by participating in a shared branch network. You may be a member at credit union X, but in another city credit union Y will let you deposit money or do basic transactions with them because their customers can do the same when they're in your hometown at your credit union.
Reply:Service Bank Credit Union


Unlimited Transanctions Yes No


CD Rates ----- Usually Better


Membership fees No Common


Free Checking Yes Yes


ATM avail Yes Yes





It really is hard to say bec each bank and credit union have their own rules etc. Since i have both, i find that the banking hours is the big difference for me. Credit unions usually are smaller and have a strict m-f 9-5 schedule while bigger banks have extended lobby hours and have customer service available. ATM cards are available. Only thing is, not only can u make just a small number of atm withdrawals a month but also keep in mind, there are only certain number of atms that u can use. really depends really depends what u need it for.