Pros And Cons Of Credit Unions | Bankrate

Our writers and editors used an in-house natural language generation platform to assist with portions of this article, allowing them to focus on adding information that is uniquely helpful. The article was reviewed, fact-checked and edited by our editorial staff prior to publication.Credit unions have a lot in common with banks, but there are significant differences, too. Unlike banks, credit unions are not-for-profit financial institutions that are owned by their members, which gives them some advantages over banks.Even though they offer many of the same products and services as banks, credit unions have a few drawbacks. Here are the pros and cons of credit unions.Pros of credit unionsLower borrowing rates and higher deposit yields. Credit union profits go back to members, who are shareholders. This enables credit unions to charge lower interest rates on loans, including mortgages, and pay higher yields on savings products, such as share certificates (the credit union equivalent of ce...