Which of the following is true about credit unions compared to commercial banks?

Credit unions are member-owned financial institutions that often offer lower fees and interest rates compared to commercial banks. This is primarily because credit unions operate on a not-for-profit basis, aiming to benefit their members rather than maximize profits for shareholders. As a result, any excess earnings can be returned to members in the form of reduced fees and more favorable interest rates on loans and savings accounts.

Additionally, credit unions typically have lower operating costs, which allows them to pass those savings on to their members. This is in contrast to commercial banks, which are profit-oriented and may impose higher fees and charges to generate returns for their investors. Lower fees and rates are a significant advantage for consumers looking to manage their personal finances more effectively.