If you’re considering moving a new financial institution, you may debate which type is best for safeguarding your hard-earned money: a bank or a credit union.

The former has been trusted for ages for its security and reliability, while the latter offers distinct perks to its members. Keep the following key points in mind before deciding to open an account with either.

Banks

Often the first choice given their prevalence and familiar marketing, banks are for-profit organizations owned by shareholders and investors. This means that their main goal is to maximize profits, a priority that can affect their consumers in various ways—namely, you may see higher interest rates on loans and more service fees on products.

However, banks still present several benefits. For instance, traditional ones like Wells Fargo, Chase, and Bank of America have hundreds of brick-and-mortar locations, providing easy access to face-to-face customer service, cash withdrawals, check depositing, and more. They also tend to have ATMs in convenient places such as grocery stores and gas stations so you can utilize cash services on the go. What’s more, the vast size of these financial institutions equips them to extend a wide range of offerings beyond typical checking and savings accounts, such as financial advisory services. They also tend to stay on the cutting edge of technological advancements, developing mobile apps that make banking simpler for users.

That said, big banks are not your only option. Especially if you live in a small town or rural area, you may have more convenient access to a community bank. Although these smaller organizations tend to have fewer resources, they may offer more personalized customer service due to being rooted in the communities they serve.

Perhaps of chief importance, most banks are insured by the FDIC, an agency that gives compensation of up to $250,000 per account should the bank go under. But note that certain products, including stocks, annuities, and cryptocurrency, are excluded from FDIC policies.

Credit Unions

These institutions have two core distinctions from major banks: they are owned by their members and are not-for-profit. While this sounds appealing, membership may be limited, meaning that you must live in a specific city, work for a given company, or belong to a certain group—be a veteran, for example—to qualify. Credit unions are also generally smaller organizations with fewer brick-and-mortar locations, so if you move out of state, you may lose convenient access or even membership to yours. Further, some such institutions may offer a more limited library of services than a big bank; however, many still provide investment accounts like IRAs, credit cards, and other financial products on top of traditional checking and savings.

Credit unions are small but mighty, often promoting perks such as higher interest rates on their savings accounts than banks, which could greatly increase your deposit returns. They may also feature lower loan rates and fewer transaction and service fees, helping personal and business account holders alike save significantly. And while they aren’t protected under the FDIC umbrella, many credit unions are insured by the National Credit Union Administration (NCUA), a similar form of protection that compensates members up to $250,000 should the credit union close. Just note that not all institutions qualify, so you’ll want to check if any you’re considering are insured before opening an account.

Investing Wisely

If you’re eager to deposit your funds somewhere new, assess your financial goals to plan a path forward; for assistance doing so, consider reaching out to a financial advisor. From there, research or even visit multiple banks and credit unions to better ensure that you invest your money somewhere appropriate for you: an institution that aligns with your priorities and satisfies your ongoing needs.