When it comes to managing your money, choosing the right financial institution matters. But what’s the difference between a bank and a credit union—and why does it matter to you?

At Tech Credit Union, we often hear this question from new members and community residents. The truth is, while banks and credit unions offer many of the same services—checking accounts, savings, mortgages, auto loans—their structure, mission, and values set them apart.

Below, we’ll break it down so you can decide what’s best for your financial future.

🏦 What Is a Bank?

Banks are for-profit financial institutions. They are owned by shareholders and aim to generate returns for investors. This means any profit they earn goes to stockholders, not customers.

Key Features of Banks:

  • Profit-driven: Profits are returned to investors, not customers.

  • Widely available: Larger footprint with many branches and ATMs, often nationwide.

  • Higher fees: Banks tend to charge more for account maintenance and overdrafts.

  • Eligibility: Anyone can usually open an account—no membership required.

🤝 What Is a Credit Union?

Credit unions are not-for-profit, member-owned financial cooperatives. That’s right—when you join a credit union, you’re more than just a customer—you’re a member-owner.

Key Features of Credit Unions:

  • Member-focused: Earnings go back to members via lower fees, better rates, and improved services.

  • Community-oriented: Typically focused on serving local regions or select groups.

  • Lower loan rates and higher savings yields: Because credit unions aren’t profit-driven, members often enjoy better financial returns.

  • Membership-based: You must meet eligibility requirements, such as living in a certain area or working for a certain employer. At Tech CU, membership is open to many in Northwest Indiana and Illinois.

💡 Why Choose a Credit Union Like Tech CU?

Tech Credit Union was founded to serve hardworking individuals and families right here in our region. We're proud to offer:

  • Better interest rates on auto loans, mortgages, and credit cards

  • Fewer fees and transparent account terms

  • Personalized service from people who live and work in your community

  • Local decisions from a team that understands your needs

  • Digital tools like mobile banking, remote deposit, and online applications—without sacrificing local service

And unlike big banks, we reinvest earnings into member benefits and community programs, not Wall Street.

🔗 Related Resources (Backlink Suggestions)

Here are a few other articles and resources that help you make informed financial choices:

📣 Bottom Line

Banks and credit unions both help you manage your finances—but only one puts people over profit. If you’re looking for a financial institution that cares about your goals and your community, a credit union like Tech Credit Union might be the perfect fit. Contact us by phone at 800.276.8324 or visit your nearest branch.