Finance Matters

How credit unions are different to banks
There are many differences between credit unions and banks

A common question we get asked is ‘what is the difference between banks and credit unions?’ From the outside, it may be hard to tell. We are here to explain to you the real difference between banks and credit unions.

Key differences between banks and credit unions

For-profit vs Not-for-profit
Being for-profit, banks aim is to make money from their loans and investments to satisfy shareholders. Whereas, credit unions are not-for-profit, meaning there are no external shareholders to satisfy, so profit can go back towards benefiting the members.
Shareholders vs Members
Banks are owned and run by their shareholders. On the other hand, credit unions are owned and run by their members. By becoming a member of a credit union, you have a say. Members are welcomed to attend an Annual General Meeting to vote on key decisions and have their say.
Ethical focus & social responsibility
A credit union’s main purpose is to serve their members by improving their financial position, encouraging healthy saving habits, and providing affordable loans where needed. A key focus of credit unions is also to educate their members financially.

Here to help you save, there if you need to borrow

To find out more about Serve & Protect and how you can become a
member, visit: www.serveandprotectcu.co.uk

The information provided in this article is for guidance and educational purposes only. Police Credit Union Ltd. does not offer regulated financial advice. Please seek independent financial advice.

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Serve and Protect CU is a trading name of Police Credit Union Limited, Guardians House, 2111 Coventry Road, Sheldon, Birmingham, B26 3EA. We are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority & Prudential Regulation Authority under registration number 213306.

Police Credit Union Ltd. is a member of the Financial Services Compensation Scheme. This means a members savings are covered by the FSCS depositor guarantee scheme up to the value of £85,000. Under the Distance Marketing Directive, you have the right to cancel your savings account within 14 days of opening without financial or other penalty.

© Serve and Protect CU 2021. All rights reserved.

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