Answer:
Banks and credit unions are both financial institutes that provide goods and service to help you manage your assets, such as checking accounts and loans. However, while banking is profitable institutions with which anyone can do business, a credit union is a non-profit organization which offers its members only services and products.
Step-by-step explanation:
1. Banks are organizations for profit. Most of them are highly profitable. In the second quarter of 2018, the net earnings of FDIC Insured Institutions were $60.2 billion. Banks pay taxes on profits they receive and many businesses with paying board members are publicly traded to which to respond.
The credit union is not profit-oriented, so it is typically federal tax-free. Some even receive subsidies from sponsoring organizations.
2. Many banks do business with any customer who has no bank background. They're different from credit unions— they're not available to anybody. A credit union is a cooperative consisting of members of the same association, such as workers in the same sector, members of the same religious institution or simply citizens of a local group.
3. Credit union members also offer a more personalized service as part of a community than large banks. Credit unions will, for example, be more likely to accept loans and provide financial education and support for their members.
Because members need to share a common bond, credit unions are often smaller than national banks and therefore can not provide as many products as possible. Not all credit unions, for example, offer industrial credit.