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.
Related or Semi-related Video
Finance: What is a Credit Limit?39 Views
Finance, a la shmoop. What is a credit limit? Alright people well simply put the
maximum amount you get to charge or use on a loan or credit account, that's a [Credit limit definition written on a 100 dollar bill]
credit limit. So yeah it's that thing that keeps toddler Joey from ordering
two hundred thousand dollars worth of Snickers bars. [Toddler looking at the snickers bar]
If you accidentally you know leave out your Amex. (Illustrative example time) If you have a ten thousand
dollar line of credit or credit card you can't spend $20,000 on a trip to Vegas,
sorry. You might be able to go on a smaller trip to Atlantic City but once [Picture of Atlantic City]
you hit that 10 grand well the party's over until you pay some of that money [$10,000 flashing in red]
back, and by the way taking that smaller trip and then putting everything on red [Chips landing on a roulette table]
22 in hopes of funding your next trip to Vegas? Probably not the soundest
financial planning... sorry, let's keep it real. [Guy putting on a serious face]
Up Next
What is the Equal Credit Opportunity Act? Signed into law during the Nixon-Ford era in 1974, the Equal Credit Opportunity Act is essentially an ant...
How do credit card companies work? Credit card companies are, in a way, lenders. They give consumers a rectangular piece of plastic that allows the...
What are credit ratings and how are they interpreted? Credit ratings describe a borrower’s likelihood to pay back their debts; it’s a look at h...