Updated September 30, 2026
When it comes to banking, people often think of a traditional bank, but there’s another option: Credit Unions! Many don’t know the difference, but it’s worth learning about the institutions that you trust with your finances.
What sets credit unions and banks apart? The short answer: Credit Unions are not-for-profit institutions owned by the members, while a bank is a for-profit business owned by shareholders. That ownership difference impacts where the profits go, how rates and fees are set, and who gets a voice.
Both often offer similar types of accounts and loans, but they operate a bit differently. Below is a side-by-side comparison of the two.
What Is a Credit Union?
A credit union is a community-focused cooperative, with profits coming back to you, the member. When you open an account, this buys you a share, which makes you a partial owner with a vote in how the institution is run.
Credit unions return profits to members and the community instead of paying shareholders. This may include dividends, competitive rates, community initiatives, and member-focused fee structures. Federal Credit Unions like GHFCU are chartered and regulated by the National Credit Union Administration (NCUA).
Membership at Georgia Heritage Federal Credit Union is open to anyone who lives, works, worships, or attends school in Chatham, Effingham, and Bryan Counties, and their immediate family members.
Bank vs. Credit Union: Side-by-Side Comparison
| Bank | Credit Union | |
| Ownership | Shareholders and investors | Members who bank there |
| Purpose | Generate profit for shareholders | Return value to members and serve the community |
| Profits go to | Investors and executives | Members through dividends, competitive rates, community initiatives, etc. |
| Your vote | None unless you own stock | One vote per member, regardless of balance |
| Deposit insurance | FDIC, up to $250,000 | NCUA, up to $250,000 |
| Who can open an account | Generally anyone | Anyone who meets membership eligibility |
| Decision-making | Often regional or national | Local board elected by members |
Ownership and Structure
Banks are typically for-profit institutions owned by shareholders seeking financial returns. In contrast, credit unions are not-for-profit organizations owned by their members. As a member of a credit union, you have a say in decision-making processes and can participate in voting for the board of directors.
Where the Profits Go
A bank’s earnings go to shareholders. A credit union’s earnings go back into the institution and to its members.
Credit unions typically direct earnings toward higher dividends on savings accounts and share certificates, lower rates on auto loans and mortgages, and reduced or eliminated account fees. Some of these funds also go toward local programs like college scholarships and financial education.
Service and Local Decision-Making
Credit unions prioritize personalized customer service, focusing on building strong relationships with their members. Many credit unions maintain local decision-making processes that allow staff to better understand individual member circumstances.
Rates and Fees
Credit unions are known for offering competitive interest rates on loans and savings accounts. Since they are not driven by profit maximization, many consumers find credit unions offer competitive rates and fees compared to other financial institutions.
Rates vary by institution and by product, so compare before you move your money around. You can view current GHFCU rates and our full fee schedule any time, and run the numbers yourself with our financial calculators.
Deposit Insurance: NCUA vs. FDIC
Both are backed by the full faith and credit of the United States government, and both insure deposits up to $250,000 per depositor, per institution, per ownership category. Bank deposits are insured by the FDIC. Credit union deposits are insured by the NCUA.
Your money is equally protected either way, just by different entities.
Benefits of Choosing a Credit Union
Competitive Rates
Because the goal is member value rather than shareholder return, the margin between what the institution pays on deposits and charges on loans is generally narrower, which may help support competitive loan rates for members.
If you are shopping for a vehicle, compare a credit union auto loan against the dealer’s financing offer before you sign. The difference over the term of your loan might be significant.
Lower or Fewer Fees
Many credit unions are known for member-focused fee structures and may charge lower fees for certain services than some financial institutions.
GHFCU members also have surcharge-free access to ATMs nationwide through the MoneyPass ATM Network.
Investing in the Community
Credit unions have a strong commitment to the communities they serve. They frequently actively participate in community initiatives and support local businesses.
At Georgia Heritage Federal Credit Union, our mission is making a positive difference for our members and the communities we serve. We regularly give back to our community with scholarships for local students, sponsorships across Savannah, Pooler, Rincon, and Richmond Hill, participations in local events, and financial education programs in local schools.
Part-Owned by Members
The Board of Directors at GHFCU is made up of local volunteers elected by Credit Union members, giving them shared interests and an equal stake in the community. Annual meetings are open to members of the Credit Union, where they can cast their vote and hear about the different things happening at the Credit Union.
Financial Education and Support
Many credit unions offer resources, workshops, and personalized advice to help you make informed financial decisions and achieve your goals. Whether you’re saving for a home, planning for retirement, managing your budget, or looking to start financial education early with our youth accounts, credit unions are there to provide the necessary support.
Nationwide Access
The most common concern about credit unions is branch access. Shared branching is the solution.
Through the CO-OP Shared Branch network, GHFCU members can make deposits, withdrawals, and payments at thousands of credit union branches nationwide. Combined with the mobile app, digital wallet, and remote check deposit, day-to-day banking works the same whether you are in Savannah or out of state.
How to Join a Credit Union in Savannah, Pooler, Rincon, or Richmond Hill
Anyone who lives, works, worships, or attends school in Chatham, Effingham, or Bryan counties, and their immediate family members, are eligible to apply for membership at the Credit Union. Once you join, your immediate family stays eligible even if they move.
Opening an account takes a few minutes online. You will need a government-issued ID, your Social Security number, and a small opening deposit that establishes your share of ownership.
Ready to Become a Member?
Membership at Georgia Heritage means ownership. Member deposits help support loans and financial services for fellow members and the communities we serve, your vote helps choose the board, and the Credit Union’s earnings are reinvested to benefit members through products, services, competitive rates, and community investment, instead of going to shareholders.
Open an account online in minutes, or call us at (912) 236-4400 and we’ll happily walk you through the process.
Federally insured by NCUA. Equal Housing Lender.
All loans are subject to credit approval and underwriting. Terms and conditions apply. See Credit Union for full details.
