Credit union vs bank

What’s the practical difference between a credit union and a bank? Are there any downsides to banking with a smaller, local bank?

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A credit union is like an organization of a community, where members can put their savings and use them to access cheaper loans.

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Typically, stockholders who buy for-profit banks do so with the expectation of receiving dividend payments. In contrast, credit unions are member-owned, non-profit cooperatives that are dedicated to the financial well-being of the people, families, and communities they support.

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Credit unions typically offer reduced rates and fees, as well as more personalised customer care.