If you think all financial institutions operate the same way, then you may be surprised to learn how different credit unions, community banks, and national banks are from one another.
Each of these offers similar core services, including checking accounts, savings accounts, mortgages, and personal loans, but this is often where the similarities end.
Credit Unions
Credit unions are not-for-profit, member-owned financial institutions. When you open an account, you become a member of the institution and not just a customer. Credit unions are required to return profits to their members in the form of interest rates, fewer fees, or capital reserves.
Credit unions tend to focus heavily on personalized customer service and financial education, such as debt management and budgeting tools. However, they may have fewer branches or limited technology compared to larger banks. Many credit unions participate in shared branch networks and surcharge-free ATM access across the country, which can increase its footprint.
Community Banks
Community banks are typically smaller, locally owned banks that serve a specific town, county, or region. Like credit unions, they emphasize relationships and community involvement. Decisions are often made locally, such as with mortgages, which can offer a huge advantage for small business owners or homebuyers who may be concerned about getting approval for certain financial products.
Community banks provide most of the same products as larger banks, but with a local touch. They may not always match the global reach of national banks, but they typically offer an abundance of personalized customer service and strong community ties. Community banks are often an integral part of the local economy and help support the businesses and families they serve.
National Banks
National banks are large, for-profit institutions that operate across the country (and sometimes globally). Because of their size, they may provide a broad range of products and services, from basic checking to investment accounts, wealth management, and international banking.
National banks also tend to have the most advanced technology, such as robust mobile apps, widespread ATM networks, and 24/7 customer service. However, these benefits can come with trade-offs: higher fees, stricter lending criteria, and less personalized service compared to credit unions or community banks. Also, their physical branch locations may be more limited in rural areas, making it difficult for in-person customer service.
Choosing Between a Credit Union, Community Bank, and National Bank
Ultimately it comes down to what works best for your lifestyle and financial goals when deciding between these options.
Choosing a community bank like Peoples National Bank of Kewanee is a smart move because it offers the best of both worlds, personalized service and local decision-making paired with the financial strength and modern conveniences you expect from a larger institution. Unlike big national banks, community banks like ours understand the unique needs of our community and build relationships that go beyond transactions. And while credit unions serve their members well, a community bank can provide a wider range of products, faster loan approvals, and local investments that directly support the growth of your hometown. With Peoples National Bank of Kewanee, your money stays close to home and is working for you and your community.
Don’t forget if you have any questions regarding the choice of financial institutions, you can always reach out to one of our dedicated team members here at any of our 10 branch locations.
