When comparing credit unions to traditional banks, several advantages become apparent:
1. Credit Options
Credit unions may provide credit options that might be otherwise unavailable through traditional banks .
2. Lower Fees and Better Interest Rates
Credit unions typically have lower fees and better interest rates compared to traditional banks .
Better interest rates on deposits, with chequing and savings accounts likely to earn more interest than at a traditional bank.
3. Customer Focus
Credit unions can focus more on the customer than the bottom line, as they are owned by their members and run as a cooperative .
4. Community-Centric Structure
Credit unions are often community-centric, which allows them to cater to the specific needs of their members.
5. Regulatory Structure
Many credit unions are provincially-regulated, meaning provincial legislations dictate how they can lend, borrow, and invest. Some are now federally chartered and are regulated by federal legislation like other banks .