Building Societies Vs Credit Unions Building Society It

Building Societies V’s Credit Unions

Building Society • It is a financial Institution. • Offers a wide range of banking services. • Specialise in lending.

Advantages Disadvantages • Offer a wide range of banking and financial services. • Good rate of interest. • Lots of branches. • Longer opening hours then commercial banks • D. I. R. T must be paid on the interest earned on savings. • If you want to withdraw a large amount of money, you have to give a certain number of days notice.

Credit Union • It is a non-profit making co-operative organisation. • People save money and lend to each other at fair rates of interest. • The regular savings put in by the members form a pool of money which is then used to give loans to other members.

Advantages • Located in many cities and towns e. g. Charleville credit union. • Flexible opening hours. • Interest rate is low • Some employees are volunteers hence…? • D. I. R. T is not deducted from the interest you receive on your savings. Disadvantages • The amount you can borrow – related to the amount you have saved. • Do not offer the same range of services as commercial banks.

Now take 5 minutes to… • Now get into pairs • Discuss three main differences between a building society and a credit union. • Write down your three main differences.