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Credit Union
Explanation:
A nonprofit financial cooperative that offers its members a variety of savings and credit services. Credit unions typically have some sort of membership requirement related to the groups you belong to or where you live, go to school, work, or worship.
While credit unions typically offer the same suit of products and services as banks, they're often able to provide better terms because they are not concerned with turning a profit. Credit unions do have certain drawbacks, however, as they are typically localized, may not offer round-the-clock customer service, and are unlikely to have as many branches and ATM locations as large banks.
The National Credit Union Administration (NCUA) insures funds deposited at credit unions for up to $250,000 per accountholder.
Our Thoughts:
There are indeed differences between banks and credit unions, and while personal preference will certainly play a large role in which you choose, we recommend considering bottom line impact and convenience first and foremost. After all, you probably won't end up caring if one particular institution's customer service is slightly lacking if it offers the absolute best terms on the financial products and services you're most interested and isn't a logistical nightmare to do business with.