Ask The Banker: Difference between a bank and credit union

You can get traditional loans and deposit services at both.

Posted: Nov 12, 2018 5:58 PM

EUGENE, Ore. -- Banks and credit unions both do great things for their community, Oregon Pacific Bank President and CEO Ron Green said.

What’s the difference between a bank and a credit union?

There are organizations of various sizes -- national organizations, regional organizations and local organizations -- on both sides. Whether it’s traditional loans or deposit services, you can get them at both.

When credit unions were formed initially years ago, their charter was limited to providing those services to a specific industry, such as teachers or the local steamfitters union. Over the course of time, those charters changed to a community credit union – meaning they could provide services to anyone in the community.

Lastly, the most significant difference between the two is that credit unions are tax exempt, Green said. They do not pay income tax both at the federal or the state level where banks do.

If you have a banking or finance question for Ron Green, click here.

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