By Dakota West Credit Union
If you’ve ever searched “credit union vs. bank,” you’ve probably noticed they seem similar at first. Both offer checking and savings accounts, loans, debit cards, and online banking. So what’s the real difference — and why does it matter?
The answer comes down to who the institution is built for. Banks are designed to generate profits for shareholders. Credit unions are designed to serve their members. That single difference affects everything from rates and fees to your overall banking experience.
Here’s a simple, helpful breakdown — and why so many people choose Dakota West Credit Union.
Banks are owned by shareholders and investors. Their goal is to increase profits for those shareholders. That means business decisions — including fees and interest rates — are made with profitability in mind.
Dakota West Credit Union is a not-for-profit financial cooperative. Instead of focusing on shareholder profit, credit unions focus on member value.
In short:
Because credit unions return earnings to members, that value shows up in practical ways. Instead of profits leaving the community, they stay here and support members directly.
That’s why credit union membership often comes with:
One of the biggest credit union benefits is financial. Since credit unions aren’t trying to maximize profit for investors, they can pass savings back to members.
At Dakota West, that often means:
Even a small difference in interest rates can save you hundreds — or thousands — over the life of a loan.
Credit unions are designed to build relationships, not just transactions. That member-first approach creates a different kind of experience.
At Dakota West Credit Union, we’re proud to offer:
Whether you’re opening your first checking account or buying a home, you deserve support that feels personal — because it is.
Banks may be headquartered far away, and their profits often leave the communities they serve.
Credit unions reinvest locally. That means when you bank at Dakota West, your money helps strengthen the region through:
Credit unions are community-rooted by design — because members are the community.
For many people, yes. If you want a financial partner that’s:
Then credit union membership is a smart choice.
A bank is a place you buy services from.
A credit union is a place you belong to.
Credit unions offer the same modern financial tools you’d expect from a bank, including:
So the difference isn’t what you can do — it’s how and why it’s done. Dakota West builds services to benefit members, not maximize fees.
When you choose where to bank, you’re choosing more than an account — you’re choosing a financial relationship.
Dakota West Credit Union exists to serve members with:
Ready to experience the credit union difference for yourself? Dakota West Credit Union is here to help you save more, borrow smarter, and bank with people who put members first. Become a member today and see why choosing a credit union over a bank can make a real difference.
Is a credit union better than a bank?
Credit unions can be a better fit for many people because they’re member-owned and often offer lower fees, better rates, and more personal service.
What is the biggest difference between a credit union and a bank?
The biggest difference is ownership. Banks are owned by shareholders, while credit unions are owned by the members who use them.
Are credit unions safe?
Yes. Credit unions are federally insured by the NCUA, which protects deposits up to at least $250,000 per member — similar to FDIC insurance at banks.
Why do credit unions have better rates?
Because credit unions are not-for-profit, earnings are returned to members through improved loan rates, stronger savings returns, and lower fees.