Credit Unions and traditional banks offer many of the same products and services, such as chequing and savings accounts, loans, mortgages, business banking, and credit cards. So why choose a credit union over a traditional bank? The distinction lies in how credit unions operate and who they serve. Here are a few main differences between a credit union and a bank.  

Non-Profit 

Credit Unions are financial cooperatives with profits reinvested to benefit members. A few ways this is done are through investing in technology to serve members better, dividend payments, and enhanced products and services. Banks, on the other hand, are for-profit entities with earnings returned to shareholders. Provincial Credit Union is a democratic, provincially regulated organization with a board of directors who ensure that Provincial Credit Union has the best interest of members and the community in mind.  

Member-Owned 

Provincial Credit Union is owned by its members. Everyone who has an account with Provincial Credit Union is a member, meaning they are a part-owner of Provincial Credit Union. Banks are owned by their shareholders. When a customer opens a bank account, they do not have shares in the bank and therefore do not have a say in the organization’s operations.  Members have a say in how the credit unions operate and have the opportunity to serve on and elect the board of directors, as well as vote in Annual General Meetings.  

Invested in Community 

Provincial Credit Union prospers when its members succeed. So, instead of being solely profit-driven, Provincial Credit Union is people-driven. Because of this, Provincial Credit Union invests in the local community of Prince Edward Island through donations and sponsorships, scholarships, financial literacy, community partnership, and volunteerism. Most banks operate nationally and lack specific local and community focus. With Provincial Credit Union, profits stay local, fuelling the economy of PEI instead of being sent to shareholders in other parts of the country.  

If you want to learn more or are interested in opening an account to become a member of Provincial Credit Union, contact us today!