Serious question. I’m currently with a bank and have heard CU’s are better. Is there any difference?
In: 4
The biggest difference is that CU’s are exempt from income taxes.
In theory they were set up as cooperatives to serve limited groups of people.
In practice they now serve everyone they can just like a bank.
They supposedly redistribute earning back to “members” (anyone that does business with them) through better rates but in reality they’re pricing more or less like everyone else is – based on what the market will bear given the circumstances.
There are supposed to be some limitations on what kind of loans they can do but those keep expanding.
Ultimately they’ve become banks with a tax loophole that benefits you very little.
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