Frequently Asked Questions
What is the difference between a credit union and a bank?
Banks and credit unions can both carry federal deposit insurance (FDIC for banks; NCUA for credit unions). Without federal deposit insurance, an institution will not be rated by Bauer. FDIC and NCUA carry the same guarantees and are both backed by the Federal Government. What primarily sets banks and credit unions apart is their ownership. Banks can be owned by stockholders, individuals or groups. Credit unions are not-for-profit entities, owned by their members. The allegiances vary according to who owns the institution.