What is the main difference between a retail bank and a credit union?

The main difference is ownership: a retail bank is a for-profit company owned by shareholders, while a credit union is a not-for-profit cooperative owned by its members.

Are retail banks and credit unions the same thing?

No, they are not the same because retail banks prioritize profit for shareholders, whereas credit unions return earnings to members through lower fees and better rates.

Which is better for a personal checking account, a retail bank or a credit union?

Credit unions are often better for personal checking because they typically charge lower monthly fees and require smaller minimum balances than retail banks.

Why do credit unions usually offer lower interest rates on loans than retail banks?

Credit unions offer lower loan rates because their not-for-profit structure lets them pass earnings back to members instead of paying shareholders.

Is my money safer in a retail bank or a credit union?

Your money is equally safe in both because the FDIC insures retail banks and the NCUA insures credit unions, each covering up to $250,000 per depositor.

Can I use any ATM with a credit union like I can with a retail bank?

Credit unions often provide surcharge-free ATM access through shared networks, but retail banks usually have more proprietary ATMs nationwide.

What is a common mistake people make when choosing between a retail bank and a credit union?

A common mistake is assuming all credit unions have limited branches, when many belong to shared branching networks offering thousands of locations.

Can I have accounts at both a retail bank and a credit union at the same time?

Yes, you can have accounts at both simultaneously, which lets you enjoy a credit union's low fees and a retail bank's advanced mobile apps.

How do retail banks and credit unions differ for getting a mortgage or auto loan?

Credit unions frequently offer lower rates and more flexible underwriting for auto loans, but retail banks often provide faster online mortgage approvals.

Can I switch from a retail bank to a credit union without closing my old account?

Yes, you can switch gradually by opening a credit union account first, then moving direct deposits and automatic payments before closing your retail bank account.

Difference Between

Difference Between Retail Banks and Credit Unions

Written byNex Virox Team

Editorial Team

Reviewed byVarshal Nirbhavane

Senior SEO & Organic Growth Professional · 5+ years

Published: August 26, 202619 min read

Quick answer

The main difference between Retail Banks and Credit Unions is that retail banks are for-profit institutions owned by shareholders, while credit unions are not-for-profit cooperatives owned by their members. Retail Banks is a profit-driven financial institution serving the general public, while Credit Unions is a member-owned cooperative returning profits to members via lower fees and better rates.

Key takeaways

Core distinction: Retail banks are for-profit corporations; credit unions are not-for-profit cooperatives owned by members.
How they work: Retail banks serve the general public; credit unions serve only people within a defined membership field.
Cost and rates: Credit unions typically offer lower loan rates, higher savings yields, and fewer monthly fees than banks.
Best-fit use case: Choose a retail bank for extensive branch networks, advanced apps, and small-business services.
Common decision mistake: Assuming credit union membership is unavailable; many now accept broad community or employer-based eligibility.

Table of Contents18 sections

Difference Between Retail Banks and Credit Unions: Comparison Table

Aspect	Retail Banks	Credit Unions
Definition	For-profit financial institutions owned by shareholders and publicly traded or privately held.	Not-for-profit financial cooperatives owned and governed by their member-customers.
Purpose	Maximize shareholder value by generating profit from fees, interest margins, and investment products.	Serve member financial well-being by returning surplus earnings as lower fees and better rates.
Core Mechanism	Banks lend deposited funds at higher interest rates than they pay depositors to earn spread income.	Credit unions pool member deposits to lend among members, recycling surplus back to members.
Ownership Structure	Owned by shareholders who elect a board focused on profitability and stock performance.	Owned by members, each holding one equal vote regardless of deposit balance.
Governance Model	Board of directors appointed by shareholders with professional executives running daily operations.	Volunteer member-elected board sets policy; members vote on major decisions annually.
Profit Distribution	Profits distributed as dividends to shareholders or reinvested to boost stock value.	Surplus earnings returned to members via lower loan rates, higher deposit yields, or dividends.
Tax Status	Pay federal and state corporate income taxes on all net earnings.	Generally exempt from federal income tax under Section 501(c)(14) of the IRS code.
Regulatory Body	Chartered and examined by OCC, FDIC, or state banking regulators depending on charter type.	Chartered and examined by NCUA or state credit union regulators with federal insurance backing.
Deposit Insurance	FDIC insures deposits up to $250,000 per depositor per insured bank.	NCUA insures member shares up to $250,000 per member per insured credit union.
Membership Requirement	Open to any individual or business without needing to meet affiliation criteria.	Require membership eligibility based on employer, geography, family, or association affiliation.
Branch Network	Large national chains operate thousands of branches across multiple states and countries.	Most operate a smaller regional footprint, often limited to one state or metro area.
ATM Access	Own large ATM fleets plus partnerships; out-of-network withdrawals typically cost $2–$5.	Shared branching and CO-OP networks grant fee-free access to 30,000+ ATMs nationwide.
Digital Banking	Heavy investment in mobile apps, online platforms, and fintech partnerships for tech-savvy users.	Digital offerings vary widely; large credit unions match banks, small ones lag behind.
Product Range	Offer comprehensive services including brokerage, insurance, wealth management, and international banking.	Focus on core deposit and loan products; some offer insurance and investment services via partners.
Loan Rates	Average auto loan rates historically run 1–2 percentage points higher than credit union rates.	Average auto loan rates historically run 1–2 percentage points lower than bank rates.
Deposit Rates	Savings and CD yields typically trail credit union rates by 0.2–0.5 percentage points.	Savings and CD yields typically exceed bank rates by 0.2–0.5 percentage points on average.
Fee Structure	Charge monthly maintenance fees, overdraft fees, and ATM fees that generate significant revenue.	Charge fewer and lower fees; many waive monthly maintenance fees entirely for members.
Overdraft Policy	Typical overdraft fees range $30–$35 per occurrence with daily limit caps.	Average overdraft fees run lower, often $25–$30, with some offering fee-free grace periods.
Minimum Balances	Many checking accounts require minimum balances of $100–$1,500 to waive monthly fees.	Most checking accounts have no minimum balance requirement or fee waiver threshold.
Loan Approval Speed	Large banks often take 3–7 business days for mortgage and small business loan decisions.	Credit unions frequently decide on auto and personal loans within 1–2 business days.
Customer Service	Call centers and branch staff handle high volume; service quality varies by institution.	Member-centric model yields higher satisfaction scores in J.D. Power retail banking studies.
Technology Innovation	Lead in AI fraud detection, real-time payments, and cutting-edge mobile features.	Adopt proven technology later; rely on core processing vendors for platform upgrades.
Business Lending	Offer extensive commercial lending, lines of credit, and treasury management services.	Offer limited business lending capped by member business loan legal limits.
International Services	Provide foreign currency exchange, wire transfers, and multi-currency accounts globally.	Offer basic wire transfers but rarely handle foreign currency or international accounts.
Branch Availability	Major banks operate 24/7 branches in urban centers with extended weekday hours.	Branch hours often shorter; many close weekends and limit evening availability.
Typical Users	Appeal to frequent travelers, business owners, and customers wanting one-stop financial services.	Attract community-focused individuals, government employees, teachers, and military families.
Account Opening	Open accounts online in minutes with instant funding and no eligibility checks.	Require membership application and eligibility verification before account opening completes.
Financial Stability	Largest banks hold massive capital buffers and benefit from too-big-to-fail implicit backing.	Smaller asset bases concentrate risk; NCUA insurance and stabilization fund provide protection.
Best-Fit Scenario	Choose banks for global access, business banking, or advanced wealth management needs.	Choose credit unions for lower borrowing costs, higher savings yields, and personalized service.

What Is Retail Banks?

Retail Banks are financial institutions that provide everyday banking services directly to individual consumers, not large corporations. They exist to manage personal money, process payments, and offer loans. Retail banks generate profit primarily through interest rate spreads, account fees, and lending products designed for household financial needs.

Definition of Retail Banks

Retail Banks are licensed financial intermediaries that accept consumer deposits, safeguard funds in insured accounts, and extend credit through personal loans, mortgages, and credit cards. They operate branch networks and digital platforms to deliver transactional services, savings vehicles, and payment processing to individual account holders under government banking regulations.

Key Characteristics of Retail Banks

Characteristic	What It Means in Practice
For-profit ownership	Retail banks answer to shareholders who expect quarterly profit growth from customer accounts.
FDIC deposit insurance	Federal insurance protects individual deposits up to 250,000 dollars per depositor per bank.
Branch networks	Physical locations provide face-to-face teller services, safe deposit boxes, and local lending support.
Wide product range	One institution offers checking, savings, mortgages, auto loans, credit cards, and investment accounts.
Regulatory oversight	Federal and state agencies audit capital reserves, lending practices, and consumer protection compliance.
Interest rate margins	Banks borrow cheaply from depositors and lend at higher rates to earn their core profit.
Fee-based revenue	Overdraft charges, monthly maintenance fees, and ATM surcharges supplement interest income streams.
Shareholder dividends	Profits distribute to investors rather than being returned to customers as higher savings yields.
National accessibility	Large retail banks operate thousands of branches and ATMs across multiple states or countries.
Technology investment	Mobile apps, online bill pay, and digital check deposit compete directly with fintech challengers.

Common Examples of Retail Banks

Chase – America's largest retail bank by branches, serving over 60 million households nationwide.
Bank of America – Offers full consumer banking plus Merrill investment services under one corporate roof.
Wells Fargo – Operates roughly 4,600 branches across 35 states with strong mortgage lending presence.
Citibank – Provides global retail banking with major consumer operations in North America and Asia.
Capital One – A digital-first retail bank known for credit cards, high-yield savings, and no-fee checking.
Ally Bank – An online-only retail bank offering competitive savings rates without physical branch locations.
PNC Bank – A regional powerhouse in the eastern United States with extensive branch coverage and wealth management.
U.S. Bank – A super-regional retail bank headquartered in Minneapolis with strong midwestern consumer presence.
TD Bank – Known for extended branch hours and convenience-focused retail banking across the eastern seaboard.
Discover Bank – Purely online retail bank offering cashback checking, savings accounts, and personal loans.

Advantages and Limitations of Retail Banks

Advantages	Limitations
One-stop convenience for checking, savings, loans, and credit cards in a single institution.	Monthly maintenance fees often apply unless customers meet strict minimum balance requirements.
Physical branches provide in-person help with complex transactions, notaries, and cash services.	Savings account interest rates typically lag far behind online banks and inflation rates.
Widespread ATM networks reduce out-of-network withdrawal fees for frequent cash users.	Overdraft fees can reach 35 dollars per transaction, creating costly penalties for small mistakes.
FDIC insurance protects deposits up to 250,000 dollars, giving consumers government-backed security.	Shareholder profit demands often drive aggressive cross-selling of credit cards and loans.
Large banks invest heavily in mobile apps with robust budgeting tools and fraud alerts.	Customer service wait times frequently exceed 10 minutes during peak business hours.
Mortgage and auto loan preapproval processes are streamlined through existing account relationships.	New customers with poor credit face higher interest rates and stricter approval requirements.
Nationwide branch presence helps customers who relocate or travel frequently across state lines.	Account closure and wire transfer fees add hidden costs that are not always disclosed upfront.
Established institutions offer wealth management and retirement planning services under one roof.	Bureaucratic processes often require multiple visits or calls to resolve simple account errors.
Rewards credit cards with cashback and travel points provide tangible value for everyday spending.	Minimum opening deposits of 25 to 100 dollars can block entry for lower-income consumers.
Business banking, payroll services, and merchant accounts support entrepreneurs alongside personal accounts.	Branch closures in rural communities reduce access for customers who prefer in-person banking.

What Is Credit Unions?

Credit unions are member-owned financial cooperatives that provide banking services like savings accounts, loans, and checking accounts. They exist to serve their members rather than outside shareholders. Credit unions return profits to members through lower fees and better rates.

Definition of Credit Unions

Credit unions are not-for-profit financial cooperatives owned and governed by their depositors, who are called members. Each member gets one equal vote in board elections regardless of account balance. They pool members' deposits to offer loans and other financial products to the same membership.

Key Characteristics of Credit Unions

Characteristic	What It Means in Practice
Member-owned	Every account holder is a shareholder who shares in the cooperative's profits.
One member, one vote	Each member votes equally, so a small saver has the same say as a large depositor.
Not-for-profit	Surplus earnings go back to members instead of outside stockholders.
Field of membership	You must meet eligibility rules like employer, location, or family ties to join.
Volunteer board	Members elect unpaid directors who set policy and oversee management.
Higher savings rates	Credit unions typically pay more interest on deposits than comparable banks.
Lower loan rates	Borrowers usually receive cheaper auto, personal, and credit card interest rates.
Lower fees	Monthly maintenance, overdraft, and ATM charges tend to be smaller or absent.
Community focus	Profits and staff stay local, supporting neighbourhood lending and financial education.
Federal insurance	Deposits are insured up to $250,000 by the NCUA, matching FDIC coverage.

Common Examples of Credit Unions

Navy Federal Credit Union – the world's largest credit union, serving military members and their families.
State Employees' Credit Union (SECU) – a North Carolina giant serving state workers and their households.
PenFed Credit Union – a Pentagon-based federal credit union open to military, government, and many others.
Alliant Credit Union – a Chicago-based digital-first credit union with nationwide membership options.
Boeing Employees Credit Union (BECU) – a Washington state cooperative originally for Boeing staff, now open regionally.
Golden 1 Credit Union – a California institution founded for state employees, now serving many communities.
America First Credit Union – a Utah-based cooperative serving western states with broad community charters.
Teachers Federal Credit Union – a New York cooperative focused on educators and their families.
Digital Federal Credit Union (DCU) – a Massachusetts-based credit union with a strong online presence nationwide.
Self-Help Credit Union – a mission-driven lender focused on low-income communities and small businesses.

Advantages and Limitations of Credit Unions

Advantages	Limitations
Members receive better rates on savings and loans than most banks offer.	Branch and ATM networks are far smaller, limiting physical access in many regions.
Lower fees mean cheaper overdrafts, maintenance, and everyday account usage.	Membership eligibility rules exclude many people who cannot meet the field of membership.
Profits stay within the cooperative, directly benefiting the member base.	Mobile apps and online tools often lag behind the largest retail banks in features.
Personal service comes from local staff who understand regional needs.	Loan approval can be slower because smaller teams review applications manually.
Democratic governance gives every member an equal vote on key decisions.	Product variety is narrower, with fewer credit card rewards and investment options.
Deposits are federally insured up to $250,000 through the NCUA.	Business lending is capped by law, limiting options for growing companies.
Community reinvestment supports local housing and small business development.	Technology upgrades depend on shared budgets, so features arrive later than at big banks.
Credit unions often waive minimum balance requirements for basic accounts.	Some credit unions charge higher out-of-network ATM fees than large banks waive.
Nonprofit status means no pressure to maximise short-term shareholder profit.	Locations are concentrated in specific regions, making travel difficult for mobile members.
Members can often get lower auto loan rates than dealership financing offers.	International travel support is weaker, with fewer foreign currency and wire services.

Similarities Between Retail Banks and Credit Unions

Shared Aspect	How Retail Banks and Credit Unions Are Alike
Core Purpose	Retail banks and credit unions both exist primarily to hold deposits and provide loans to consumers.
Deposit Accounts	Retail banks and credit unions both offer checking accounts and savings accounts to individual customers.
Loan Products	Retail banks and credit unions both provide auto loans, mortgages, and personal loans to members.
Customer Base	Retail banks and credit unions both serve everyday consumers, families, and small businesses.
Government Insurance	Retail banks and credit unions both protect eligible deposits through federal government insurance programs.
Regulatory Oversight	Retail banks and credit unions both operate under strict state and federal regulatory compliance rules.
Interest Rates	Retail banks and credit unions both pay interest on savings balances and charge interest on borrowed funds.
Fee Structures	Retail banks and credit unions both charge fees for overdrafts, wire transfers, and account maintenance.
ATM Networks	Retail banks and credit unions both provide customers access to cash through extensive ATM networks.
Digital Access	Retail banks and credit unions both offer online banking portals and mobile apps for account management.
Payment Cards	Retail banks and credit unions both issue debit cards and credit cards to qualified account holders.
Direct Deposit	Retail banks and credit unions both accept payroll direct deposits and government benefit payments electronically.
Bill Payment	Retail banks and credit unions both provide bill pay services for scheduling recurring payments to vendors.
Customer Support	Retail banks and credit unions both offer customer service through phone lines, branches, and chat.
Branch Network	Retail banks and credit unions both maintain physical branch locations for in-person transactions and advice.
Identity Verification	Retail banks and credit unions both require government-issued identification and proof of address for new accounts.
Credit Checks	Retail banks and credit unions both review applicant credit scores and histories before approving loan applications.
Collateral Requirements	Retail banks and credit unions both secure certain loans with pledged assets like vehicles or homes.
Account Statements	Retail banks and credit unions both issue monthly statements summarizing transactions, balances, and fees.
Fraud Protection	Retail banks and credit unions both monitor accounts for suspicious activity and reimburse unauthorized transactions.
Data Security	Retail banks and credit unions both encrypt customer data and use multi-factor authentication for online access.
Capital Adequacy	Retail banks and credit unions both hold minimum capital reserves to absorb potential financial losses.
Liquidity Management	Retail banks and credit unions both maintain liquid assets to meet daily withdrawal and lending demands.
Audit Compliance	Retail banks and credit unions both undergo regular independent audits to verify financial accuracy and safety.
Consumer Lending	Retail banks and credit unions both specialize in small-dollar consumer loans with fixed repayment terms.
Savings Growth	Retail banks and credit unions both help customers accumulate wealth through compound interest on deposits.
Credit Building	Retail banks and credit unions both report loan payment activity to major credit bureaus for borrowers.
Member Education	Retail banks and credit unions both provide financial literacy resources and budgeting tools to customers.
Account Closure	Retail banks and credit unions both require customers to settle outstanding fees before closing an account.
Long-term Stability	Retail banks and credit unions both aim for sustained profitability and long-term operational continuity.

Retail Banks or Credit Unions: Which Should You Choose?

The deciding variable is your need for branch access and digital tools versus lower fees. Retail Banks win for national convenience, advanced apps, and business services. Credit Unions win for cheaper borrowing, higher savings rates, and personalized service. Match your top two banking priorities to the institution that excels at them.

When to Use Retail Banks

Choose Retail Banks when you travel frequently or relocate across states, because their nationwide ATM networks and physical branches are unmatched. They also fit business owners needing merchant services or investors wanting integrated brokerage accounts. If you require 24/7 phone support or the latest mobile app features, large banks deliver those consistently.

When to Use Credit Unions

Choose Credit Unions when you want lower loan rates on auto or mortgage financing, as members typically save 1-2% in interest. They suit savers seeking higher dividend yields on checking and certificates. If you value local decision-making and fee-free basic accounts with no minimum balance requirements, credit unions provide a community-focused alternative.

Common Misconceptions About Retail Banks and Credit Unions

Common Myth	The Reality
Credit unions are always safer than retail banks.	Both retail banks and credit unions carry federal insurance, but credit unions use NCUA while retail banks use FDIC coverage.
Retail banks never offer lower fees than credit unions.	Many retail banks now offer fee-free checking accounts, but credit unions still average lower monthly maintenance fees overall.
You cannot use a credit union if you travel abroad.	Most credit unions offer shared branching and co-op ATMs, giving members access to thousands of locations nationwide.
Retail banks do not care about their local communities.	Large retail banks fund community programs, yet credit unions return profits to members rather than outside shareholders.
Credit unions have terrible mobile banking apps.	Large credit unions now match retail banks with mobile check deposit, bill pay, and peer-to-peer payment features.
Retail banks always pay higher savings rates than credit unions.	Credit unions consistently offer higher average dividend rates on savings accounts compared to most retail banks.
Only low-income people join credit unions.	Credit unions serve all income levels, including professionals, teachers, and military members with high-balance accounts.
Retail banks are all exactly the same in services.	Retail banks range from mega-banks to regional institutions, each with distinct fee structures, products, and branch networks.
Credit unions do not offer business loans.	Many credit unions provide business checking, commercial real estate loans, and small business lines of credit.
Retail banks have no membership requirements at all.	Retail banks accept anyone, but some online retail banks still require a minimum deposit to open an account.
Credit unions are not for-profit and therefore pay no taxes.	Credit unions are not-for-profit cooperatives, but they do pay payroll taxes, property taxes, and other state levies.
Retail banks never offer free financial education classes.	Many retail banks host free webinars and budgeting tools, though credit unions often provide more personalized one-on-one counseling.
Credit unions have very limited ATM networks.	Credit unions participate in surcharge-free networks like Allpoint or CO-OP, often exceeding retail bank ATM counts.
Retail banks are always open on weekends and holidays.	Most retail banks close on federal holidays, while many credit unions offer extended weekday hours and Saturday branches.
Credit unions cannot issue credit cards with rewards.	Credit unions offer cash-back and travel rewards cards, frequently with lower interest rates than retail bank cards.
Retail banks do not require any proof of identity.	Retail banks enforce strict Know Your Customer rules, requiring government ID, proof of address, and sometimes a social security number.
Credit unions are only for people with poor credit.	Credit unions serve prime borrowers too, often approving loans with more flexible underwriting than retail banks.
Retail banks always charge overdraft fees on every transaction.	Many retail banks now offer overdraft grace periods or charge no fee if the account is negative by less than ten dollars.
Credit unions do not have physical branches anywhere.	Most credit unions operate local branches, and shared branching gives members access to over 5,000 locations nationwide.
Retail banks offer better mortgage rates than credit unions.	Credit unions frequently undercut retail banks on mortgage rates by 0.25% to 0.5% and often charge lower origination fees.
Credit unions are not regulated by the government.	Credit unions are heavily regulated by the NCUA and state agencies, just as retail banks face oversight from the FDIC and OCC.
Retail banks never let you speak to a real human quickly.	Many retail banks now offer 24/7 phone support, though credit unions often provide shorter hold times and local call centers.
Credit unions cannot handle large corporate accounts.	Some credit unions manage multi-million dollar deposits and treasury services for mid-sized businesses, competing directly with retail banks.
Retail banks are always more convenient for online banking.	Digital-first credit unions match retail banks with full-featured apps, while some retail banks still lack robust mobile functionality.
Credit unions do not offer jumbo certificates of deposit.	Many credit unions offer jumbo CDs with higher dividend rates than retail banks, often with lower minimum deposit requirements.
Retail banks never share profits with their customers.	Retail banks pay interest to depositors, but credit unions return surplus earnings to members as dividends or lower loan rates.
Credit unions are too small to be financially stable.	Large credit unions like Navy Federal or PenFed hold billions in assets, rivaling many regional retail banks in stability.
Retail banks do not offer any form of member voting.	Retail bank customers have no voting rights, while credit union members vote on the board of directors and major policy changes.
Credit unions only serve people in one specific city.	Many credit unions have broad fields of membership, accepting anyone who lives, works, or worships in a multi-county region.
Retail banks and credit unions are identical in every way.	Retail banks are for-profit corporations owned by shareholders, while credit unions are not-for-profit cooperatives owned by their members.

Conclusion

Difference Between Retail Banks and Credit Unions comes down to ownership and profit. Retail banks prioritize shareholder returns, while credit unions return earnings to members through better rates. Choose a retail bank for extensive branches, robust apps, and diverse products. Choose a credit union for lower fees, personalized service, and community focus.

FAQs on Difference Between Retail Banks and Credit Unions

What is the main difference between a retail bank and a credit union?: The main difference is ownership: a retail bank is a for-profit company owned by shareholders, while a credit union is a not-for-profit cooperative owned by its members.
Are retail banks and credit unions the same thing?: No, they are not the same because retail banks prioritize profit for shareholders, whereas credit unions return earnings to members through lower fees and better rates.
Which is better for a personal checking account, a retail bank or a credit union?: Credit unions are often better for personal checking because they typically charge lower monthly fees and require smaller minimum balances than retail banks.
Why do credit unions usually offer lower interest rates on loans than retail banks?: Credit unions offer lower loan rates because their not-for-profit structure lets them pass earnings back to members instead of paying shareholders.
Is my money safer in a retail bank or a credit union?: Your money is equally safe in both because the FDIC insures retail banks and the NCUA insures credit unions, each covering up to $250,000 per depositor.
Can I use any ATM with a credit union like I can with a retail bank?: Credit unions often provide surcharge-free ATM access through shared networks, but retail banks usually have more proprietary ATMs nationwide.
What is a common mistake people make when choosing between a retail bank and a credit union?: A common mistake is assuming all credit unions have limited branches, when many belong to shared branching networks offering thousands of locations.
Can I have accounts at both a retail bank and a credit union at the same time?: Yes, you can have accounts at both simultaneously, which lets you enjoy a credit union's low fees and a retail bank's advanced mobile apps.
How do retail banks and credit unions differ for getting a mortgage or auto loan?: Credit unions frequently offer lower rates and more flexible underwriting for auto loans, but retail banks often provide faster online mortgage approvals.
Can I switch from a retail bank to a credit union without closing my old account?: Yes, you can switch gradually by opening a credit union account first, then moving direct deposits and automatic payments before closing your retail bank account.