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lutik1710 [3]
3 years ago
5

How do both Banks and Credit Unions work for the benefit of individuals​

Social Studies
1 answer:
Marysya12 [62]3 years ago
5 0

Both banks and credit unions lend money to the customers.

Explanation:

Traditional banks run for the benefit of earning profits. They are licenced financial institutions which receives and offers loans by charging interest on the loans.

Credit unions are non profit organisations that are created solely to provide loans by accepting sureties and mortgages are also allowed in credit unions. FDIC is also a credit union which provides financial security to its customers. Credit unions are owned by members of the organisation and not shareholders like banks. They offer medium rate of interest than the banks because banks run on profit making but credit unions are non profit missions.

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