Credit unions typically able to offer higher interest rates to savers and tower rates to borrowers than commercial banks because of their business structure.
Banks are for-profit companies that reinvest their income to make more money. Interests rates is a Bank´s main profit generator so they earn more from a higher rate. These are high because banks have to pay dividends to their shareholders and they also pay federal and state income taxes. The federal tax rate for corporations is 21 percent.
Unlike banks, credit unions are cooperatives or non-profit corporations.They can re invest all of their savers money back into the market. Furthermore, they're exempt from state and local taxes.