Federal Credit Union - FCU

Champagne and sparkling wine both generally taste the same, but get different names based on how their made. (Or, if the champagne metaphor is too high falutin, you know how there are beverages you buy at the convenience store...and beverages your cousin makes out in the woods?)

That’s kinda what’s going on with credit unions and banks.

Essentially, they do the same thing: offer loans and accept deposits. But credit unions are not-for-profit collectives (no, not quite like the ones they had in Petrograd), while banks are for-profit institutions.

Credit unions, as they say, pass the lower overhead onto you, usually with lower loan rates and higher interest on deposits. But credit unions tend to have less reach than a nationally branded bank, so you might miss out on some amenities, and lose out on some of the benefits of scale.

A federal credit union is a further distinction within the credit union category. The federally-chartered versions differ from the standard variety in the way they are insured. But for the customer, it’s largely a difference on the label.