What is the difference between a bank and a credit union in Michigan?

Both banks and credit unions are depository institutions and offer consumers many of the same services.

A credit union is a "not for profit" cooperative organization owned by its member depositors and is established solely for the benefit of its members. A Michigan state-chartered credit union operates under the authority of and receives its powers from the Michigan Credit Union Act. There are also federally-chartered credit unions that operate under the authority of the Federal Credit Union Act and are regulated by the National Credit Union Administration (NCUA). Federal insurance is required for any credit union doing business in the State of Michigan.

A bank is a "for profit" corporation owned by its stockholders and is established to provide financial services to the general public. Bank deposits are insured by the Federal Deposit Insurance Corporation (FDIC). State-chartered banks operate under the authority of and receive powers from the Michigan Banking Code.