Why do credit unions offer better rates?

Credit unions that have converted to banks charge their customers more.

Credit unions offer better rates than banks do because they are non-profit cooperatives. As non-profits, credit unions are exempt from federal, state, and local income taxes, and don’t pay their earnings out to shareholders, so they have lower costs. Because credit unions are member-owned cooperatives, they choose to pass that savings along to member like you, in form of better interest rates. Their legal mission is to serve members, not to make profits.