Home Credit union What is the difference between a credit union and a bank?

What is the difference between a credit union and a bank?

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Many people may not be aware of how a credit union is different from a bank. Understanding the differences can help you decide where you want to bank and what local choices you have in the valley.


READ ALSO: Forbes Recognizes TruWest as America’s Best Credit Union in Arizona


For example, TruWest Credit Union, a large credit union in the Phoenix metro area, has a long history. It was founded in 1952 as the Motorola Credit Union and today has over 93,000 members in eight branches in the Phoenix metro area.

Jennifer Kimmell is Senior Vice President and Director of Marketing at TruWest Credit Union.

The main difference between a credit union and a bank is that credit unions are non-profit institutions where banks are for-profit and are either private or publicly traded. Credit unions are owned by their members and are incorporated as a cooperative. When you become a TruWest member, you become a part owner of the credit union, with a voice to help make decisions.

This for-profit or non-profit status brings different benefits to members. Profits from credit unions are usually donated to members through better rates on loans, lower fees and higher returns on savings and checking accounts. Credit unions offer the same services as banks, including access to ATMs, online and mobile banking, credit cards, wealth management services and more, but with generally lower costs. . TruWest also aims to go beyond traditional services and provide its members with access to major partners, including access to special auto pricing through Costco Auto and by supporting small businesses with debit card processing and credit via Total Merchant Concepts.

Another major difference between credit unions and banks is the service culture and approach. TruWest provides what is known as “TruDifference,” a people-centered approach, a commitment to providing excellent service and creating a culture of caring for members, employees and the community. TruWest management plays an active role in supporting staff development through diversity and inclusion education, supporting their work-life balance and recruiting solutions to problems from the bottom up.

We hope you experience the difference for yourself and visit us online at truwest.org or at the branch soon.

Jennifer kimmel is Senior Vice President and Director of Marketing at TruWest Credit Union.


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