What is the benefit of using a credit union over a bank?

Danielle appears to have a confused understanding of credit unions.

At least in the U.S., credit unions provide most of the same services as do banks. You can set up a savings account (which they call a "share" account), purchase a Certificate of Deposit, get an auto loan, and (at many) apply for a home mortgage.

The difference is that a bank is legally chartered to make a profit. They answer to an owner or external stockholders and institutional investors. By definition, everything they do should be aimed at increasing their profit.

A credit union is different. By law they are not-for-profit organizations established to serve the needs of their members (not customers, but members). When you join a credit union, you become a member, and are welcome to attend their annual meeting and vote for members of the board of directions (try getting on the board of Chase Bank...) Also by law, they must plow most of their profit back into providing better services to their members. Since they don't provide dividends to external stockholders, they often can provide lower-cost loans, and provide slightly higher interest rates on savings accounts. If you've been a member for some time, you're also more likely to be able to obtain a low-cost loan than at a bank. Most credit unions also provide their members with free credit counseling, and sponsor workshops on managing your money.

It used to be somewhat difficult to join a credit union. Most of them served only people in a certain industry or job category. But, the rules were loosened some years ago and it is generally easy to find a credit union in your community that you are eligible to join.

There is room for both banks and credit unions, but for my money credit unions are the place to go for the best service and rates.

A credit union is simply a line of credit, it's a way for you to make savings. You have the option of paying money into it either yourself or by having a salary/benefit paid in. Once you have saved enough you have the chance to take a loan out with them, not a very big one but it has very low interest. Credit unions are there for those that the bank can't help really. Some people like them but it's not a long term way to handle your money.