Making the Choice Between a Bank and Credit Union in Traverse City
For those who want to keep their money local and don’t want to deal with the hassles of a big national bank, a credit union can seem like the best alternative. That’s not necessarily the case, though.
Here in Traverse City and throughout northern Michigan, we’re lucky to have a true community bank that provides local service, community involvement, and service options only available at banks. Locally owned Honor Bank has provided the community with a customer-service-oriented banking option for more than one hundred years.
What is the difference between a credit union and a bank?
The biggest difference between a credit union and a bank is ownership. A credit union is owned by its members – you must be a member to use their services. A bank is privately or publicly owned, and open to anyone interested in opening an account.
Some other common differences:
- Services: Credit unions generally offer a narrower line of services compared to banks, so while they may have good rates on some products, they are less likely to be able to serve as your sole financial institution.
- Governance: Credit unions are governed by a volunteer board made up of their members, while banks are governed by a paid board of directors.
- Technology: Banks tend to have more sophisticated online banking and mobile banking options available for their customers than credit unions.
- Customer Service: While credit unions are often known for their customer service, small local banks like Honor Bank also offer great customer service.
Are Credit Unions FDIC Insured?
“FDIC-insured” is a designation only available to banks – credit unions are not insured by the Federal Deposit Insurance Corporation. That said, many credit unions are insured by the lesser-known National Credit Union Administration, which offers similar account insurance.
Is a credit union better than a bank?
A credit union is not necessarily better than a bank simply because it is a credit union. Whenever choosing between a bank and a credit union in Traverse City, we recommend going with the financial institution that best fits your needs. Honor Bank offers a full variety of banking services with a commitment to our local community and customers.