RCEFCU is a member-owned cooperative while a bank is a stock company.
The stockholders of a bank own the bank while a credit union’s depositors are the owners of the credit union. The board of directors of a credit union are unpaid volunteers and are elected by the membership. This ensures that members do have a say in credit union operations. The cooperative nature of credit unions is another reason why services generally cost less than at banks. For a more detailed analysis of the differences between banks and credit unions click here.