Banks vs Credit Unions: What's the Difference?

Author: 1st Choice Savings & Credit Union | Published: May 15, 2024

When it comes to your finances, choosing where you bank matters. It’s important to choose a place that you feel comfortable with, but also offers the service, tools, and solutions you need to help you reach your goals. In the financial world, there are two major institutions you can choose from: banks and credit unions.

There are 13 credit unions across Alberta, with nearly 200 branches that serve more than 622,000 members. While both provide financial services, it’s important to understand the key differences and unique features that set them apart.

A credit union is owned by its members and when you become a member, you become a shareholder. As financial cooperatives, our members have a say in how they bank. Each year, our members can vote for our Board of Directors, so you feel a piece of mind knowing decisions are being made by community members. We are locally operated in our southern Alberta communities, so we can make decisions and adapt to challenges that create a positive outcome for our members.

Banks operate as a for-profit corporation. They are owned by stockholders or shareholders, and the profit is distributed to those individuals.

The Credit Union Deposit Guarantee Corporation ensures that your deposits and any accrued interest are 100% guaranteed, safe, and secure up to any dollar amount.

A credit union offers flexibility in the services we offer. We understand that one type of service may not suit each of our members, so we tailor each experience to you. We put people before profit in every scenario. Our goal is to serve each of our members through fair and equal treatment, and providing the tools you need to be financially successful.

When you join 1st Choice Savings, you buy one common share in the company for $1.00, which entitles you to a share of our profits, among other benefits. Since opening our doors in 2001, we have given our members over $4.2 million in dividends as a thank you for being a 1st Choice member.

As a financial cooperative, we are dedicated to our members and community. We direct part of our profits back into the communities we serve, we so can make our communities stronger and a better place to live.

While both credit unions and banks provide financial services, their operating structures and philosophies are what makes them different. Credit unions focus on their members and community, while banks tend to focus more on profits. If you’re ready to take the leap and join our credit union, we can’t wait to have you!