Bank of America is a commercial bank, not a credit union
Bank of America operates as a for-profit commercial bank owned by shareholders, not as a credit union. The difference matters because it changes how the institution is run, who it serves, what it costs you, and where your money goes when you deposit it.
A credit union is a nonprofit cooperative owned by its members — the people who bank there. A commercial bank like Bank of America is owned by investors who expect a return. That ownership structure shapes everything from account fees to loan rates to how decisions get made.
Bank of America is one of the four largest banks in the United States by assets. It operates thousands of branches and ATMs nationwide, offers a full range of consumer and business banking products, and is regulated by the Office of the Comptroller of the Currency (OCC) and the Federal Reserve.
Key Takeaways
- Bank of America is a for-profit commercial bank owned by shareholders, while credit unions are nonprofit cooperatives owned by their members.
- Commercial banks like Bank of America typically charge higher fees and offer lower savings rates than credit unions, but provide more branch locations and services.
- Both banks and credit unions are insured by the federal government — Bank of America deposits up to $250,000 per account through the FDIC, and credit union deposits through the NCUA.
- Credit unions often have lower loan rates and membership requirements, while Bank of America has no membership barrier but may charge more for basic services.
How a commercial bank differs from a credit union in structure and ownership
When you open an account at Bank of America, you become a customer. When you open an account at a credit union, you become a member-owner. That distinction affects how profits are handled and who has a say in how the institution operates.
Bank of America generates revenue through fees, interest on loans, and investment services. Profits go to shareholders — people who own stock in the company. The bank's board of directors is elected by shareholders, not by account holders.
A credit union generates revenue the same way, but profits are returned to members through lower fees, higher savings rates, or reinvestment in services. Members elect the board of directors. Credit unions also typically have a field of membership — you must meet certain criteria to join, such as working for a specific employer, living in a certain area, or belonging to a particular group.
Bank of America has no membership requirement. Anyone can walk in and open an account, which is why it serves millions of customers across the country.
Fees and rates: what you typically pay at Bank of America versus a credit union
Bank of America charges monthly maintenance fees on most checking accounts unless you meet balance or deposit requirements. As of the most recent information, the monthly fee on a standard checking account ranges from $12 to $15 if you do not maintain a minimum balance or set up direct deposit. Savings accounts also carry monthly fees unless you maintain a minimum balance.
Credit unions typically charge lower or no monthly fees on checking and savings accounts. Many credit unions waive maintenance fees entirely for members who maintain even a small minimum balance or set up direct deposit.
On savings accounts, Bank of America's rates are generally lower than what credit unions offer. This is because credit unions return profits to members and can afford to pay higher rates on deposits. The difference can be significant over time — a credit union might offer 0.50% APY on a savings account while Bank of America offers 0.01% to 0.04%.
On loans, credit unions often charge lower interest rates than Bank of America. A credit union auto loan or personal loan may cost 1% to 3% less than the same loan at a commercial bank, depending on your credit and the loan term.
Federal insurance protection: FDIC versus NCUA
Both Bank of America and credit unions offer federal deposit insurance, but through different agencies. Bank of America deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per account type, per bank. A credit union's deposits are insured by the National Credit Union Administration (NCUA), also up to $250,000 per member, per account type, per credit union.
The coverage limits and rules are nearly identical. In both cases, if the institution fails, your money up to $250,000 is protected. If you have multiple account types at the same institution — such as a checking account and a savings account — each is insured separately up to $250,000.
The key difference is the insuring agency. FDIC insurance applies to banks and savings institutions. NCUA insurance applies to federally chartered and most state-chartered credit unions. Both are backed by the full faith and credit of the U.S. government.
Branch access and ATM networks
Bank of America operates over 4,000 branches and 15,000 ATMs nationwide, making it one of the largest branch networks in the country. This means you can walk into a Bank of America location in almost any major city and access your account in person.
Most credit unions operate far fewer branches — often just a handful in a single region or state. However, many credit unions participate in shared branching networks and ATM networks that extend their reach. For example, a member of one credit union can often use ATMs and services at thousands of other credit union locations through networks like CO-OP and Allpoint.
If you travel frequently or move often, Bank of America's branch network is a practical advantage. If you stay in one region or are comfortable with online banking and shared networks, a credit union's smaller footprint may not matter.
Services and products offered
Bank of America offers a wide range of products: checking and savings accounts, money market accounts, certificates of deposit (CDs), credit cards, auto loans, home loans, personal loans, investment services, wealth management, and business banking. This breadth means you can handle most financial needs under one roof.
Credit unions typically offer checking, savings, CDs, auto loans, home loans, and personal loans. Many also offer credit cards and investment services, but the range is usually narrower than at a large commercial bank. If you need specialized services like investment advisory or complex business banking, a credit union may not offer them.
Bank of America's size also means it has invested heavily in digital banking, mobile apps, and online services. Credit unions vary widely in their technology offerings — some have robust digital platforms, while others lag behind.
Regulation and oversight
Bank of America is regulated by multiple federal agencies: the Office of the Comptroller of the Currency (OCC), which charters and supervises it; the Federal Reserve, which sets monetary policy and conducts stress tests; and the Consumer Financial Protection Bureau (CFPB), which enforces consumer protection laws. State banking regulators also have oversight.
Credit unions are regulated by the NCUA at the federal level and by state regulators if they are state-chartered. The CFPB also has authority over credit unions. Because credit unions are smaller and nonprofit, they face less stringent capital requirements than large commercial banks, but they are still subject to regular examinations and compliance reviews.
Both types of institutions must comply with the same consumer protection laws: Truth in Lending Act, Fair Credit Reporting Act, Equal Credit Opportunity Act, and others. The difference is in the primary regulator and the intensity of oversight.
When Bank of America makes sense, and when a credit union might be better
Choose Bank of America if you value branch access, need a wide range of financial products, travel frequently, or want to consolidate multiple services at one institution. Bank of America's scale also means it has robust fraud protection and customer service infrastructure.
Choose a credit union if you prioritize lower fees, higher savings rates, lower loan rates, and personalized service. Credit unions often treat members as owners rather than customers, which can translate to more flexibility on loan terms or fee waivers. If you meet the membership requirements and stay in one geographic area, a credit union may save you money over time.
You do not have to choose one or the other. Many people maintain accounts at both — a Bank of America account for convenience and a credit union account for savings or loans.
Frequently Asked Questions
Can I switch from Bank of America to a credit union?
Yes. Find a credit union that serves your area or meets your membership criteria, open an account, and transfer your funds. You can keep your Bank of America account open or close it. The process takes a few days to a week depending on how you transfer money.
Is my money safer at a credit union than at Bank of America?
No. Both are federally insured up to $250,000 per account type. Bank of America is also larger and more heavily regulated, which some see as an additional safety layer. Credit unions are equally safe within the insurance limit.
Do credit unions offer the same online banking as Bank of America?
It varies. Large credit unions often have robust mobile apps and online platforms comparable to Bank of America. Smaller credit unions may have more basic digital services. Check the specific credit union's website to see what they offer.
Why does Bank of America charge more fees than credit unions?
Bank of America is a for-profit company that returns earnings to shareholders. Credit unions are nonprofits that return earnings to members through lower fees and higher rates. Bank of America also has higher operating costs due to its size and branch network.
Can I get a loan from a credit union if I do not meet the membership requirements?
No. Membership comes first. However, membership requirements are often broad — many credit unions serve entire counties, professions, or employer groups. Search for credit unions in your area to see if you may have access to for any.