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Community Banks vs. Credit Unions: Which is Better

June 10, 2024

“What’s the difference between a bank and a credit union?” 

This question is an important one to answer when you’re considering where your money belongs. While a lot of the services between the two overlap, some key differences set them apart when you’re assessing your options. Depending on your own personal circumstances, there is often a clear winner in terms of where you should take your business. 

Here are a few of the major points where community banks come out on top:

  1. More Accessible – While being a part of a credit union requires membership, there’s no such restriction at a bank. The process of getting started with a new account at a community bank is much simpler, whereas the stipulations for membership at a credit union can be quite restrictive.
  2. More Locations – Generally, community banks have more branches and ATMs than a credit union. When you’re out and about, having convenient access to your accounts can make all the difference. If you’re deciding between a bank or a credit union, find out which has more convenient locations for you.
  3. More SecurityCommunity banks are insured by the FDIC. This means that deposits are protected up to $250,000 per depositor. While credit unions are insured by the NCUA, the safety and security of your money are fully backed by the protection of the FDIC at a community bank. That's peace of mind you can bank on.
  4. More Local Economic ImpactCommunity banks are hugely important in supporting the local economy. Actively involved in developing their communities through small business loans and community reinvestment, they help drive growth and build up their community for all.

While both credit unions and community banks have their individual strengths, a community bank typically provides a more comprehensive banking experience. With a wider range of services, greater accessibility and commitment to the local community, community banks are a great place to start achieving your financial goals. If you’re looking for a new place to call home for your finances, stop by your local Community Bank of Louisiana branch to talk about transferring your loans and deposits.

Transfer to Community Bank