Longview Washington Business Directory Blog

Archive for September 9th, 2008

There is no doubt that Kelso/Longview Washington has their fair share of Credit Unions. When first looking to Bank here in Longview I wanted to know the difference between a Bank and a Credit Union. This what I found out after researching about them on the Internet.   

Differences between a Credit Union And A Bank

Credit Unions

• Credit Unions are owned by their members.
• Must be eligible to join a Credit Union.
• Most of the earnings are returned to its members.

Banks

• Banks are owned by their stockholders.
• Focused on generating profits, remember stockholders)
• Anyone can become member of a Bank.

In 1937 the United States Congress voted to make Credit Unions exempt from federal income taxes. This was because of the unique business structure. They are owned by the members them selves. This tax exemption was voted on again in 1951 and once again in 1998. This is why Credit Unions wave the fact they offer lower interest on loans. They also say they have better customer service as they have no stock holders to answer to.

Personally after looking into the differences between Banks and a Credit Union we opted to use a Local Longview Washington Bank for our business Banking needs. We also belong to a Credit Union for our personal Banking needs.