Credit union vs bank: who owns them and how they differ
By SendPay Business · · 2 min read
- 1Name it and pick your colours
- 2Choose what it does
- 3Launch when you are ready
A credit union is a financial co-operative owned by its members. Members save together and lend to each other, and any surplus goes back to members. Most banks are companies owned by shareholders and run to make a profit.
How a credit union works
- People who share a common bond, such as living or working in an area, can join.
- Members put savings into the credit union.
- The credit union lends to other members, usually at capped interest rates.
- Any surplus can be paid back to savers as a dividend.
How they differ from banks
Credit unions are usually smaller, local and focused on savings and affordable loans. Banks offer a wider range of products, like business accounts, mortgages and international payments, and run to earn returns for shareholders.
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Are savings protected?
In the UK, credit unions are regulated by the Prudential Regulation Authority and the Financial Conduct Authority, and eligible savings are covered by the FSCS up to its limit, in the same way as bank deposits.
Where SendPay fits
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Money on its way- 1Pick who to pay and type the amount
- 2Tap send and it is on its way
- 3It lands in their account
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SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.
Questions people ask
What does a flat-rate loan really cost?
Turn a flat rate into its APR to compare loans fairly.
Flat rate to APR calculator →How much of my savings is protected?
See how much is within the FDIC, EU or FSCS limit.
Deposit insurance calculator →Read next
Spotted a mistake or something out of date? and we'll fix it. How our guides are made
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.