Banks Vs. Credit Unions In 2020: Take Our Quiz And Find Out Which Is Better

Are you deciding between putting your hard-earned money in a bank or credit union? You’re in the right place.

We at Benzinga believe it’s important to be pragmatic when it comes to finding ways to make your money work for you.

Before deciding if a bank or credit union is the right place to deposit your money, put your knowledge of banks and credit unions to the test with our quiz below!

Afterward, our Benzinga banking experts will give you more information on how to find the best institution to deposit your money.

True or False: If you’re a tech-dependent person, a bank is preferable to a credit union.

True: High-end apps are uncommon at credit unions. Banks are for-profit institutions, meaning they’re continuously updating and upgrading mobile app technologies to meet their customers’ needs. You can also expect 24/7 chat support at many banks, a form of customer support you’re far less likely to find at a credit union.

True or False: Credit unions pay better interest rates on deposits than banks in 2020.

True: Not only are credit unions known to pay better interest rates on deposits, but credit unions are also known to charge fewer and less fees than traditional banks. This likely has to do with the fact that customers of credit unions are the owners, and each deposit acts as shares of the credit union’s business.

True or False: The Federal Deposit Insurance Corporation (FDIC) insures money for up to $250,000, therefore your money is safer at a bank than at a credit union. 

False: For starters, not all banks are FDIC-insured. So we strongly recommend you do your due diligence ahead of opening a savings or checking account at a bank. The National Credit Union Insurance Fund (NCUSIF) also insures your money up to $250,000, so your money is also safe at credit unions.

According to the Credit Union National Association, between 2008 and 2012 four times as many banks failed compared to credit unions. Our research also found a total of 51 banks failed and only 21 credit unions failed in 2012.

Bank Or Credit Union?

There’s no question banks and credit unions both have their pros and cons. While you’re deciding where the best place is for your money, our Benzinga bank and credit union experts are here to help answer your questions.

Ready to learn more? Check out our complete banks vs. credit unions guide to help you decide which financial institution is the best place for your money.