Credit Unions vs. Banks in Australia

Topics: Debit card, Bank, Interest Pages: 3 (1051 words) Published: March 2, 2014
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redit unions and banks are both financial organisations that offer similar services. A Both credit union and a bank offer mortgages, equity loans, auto loans, savings accounts, debit cards, checking accounts, credit cards and many more similar facilities. While offering services that are alike they have very different processes. A bank is an institution, run for profit, where you deposit your money and are able to take your money out when every you want, however a credit union is an not for profit organisation in which the money you invest will allow you to buy a share of the institution, meaning you would own part of the credit union. Founded in 1959, Australian Defence Credit Union (ADCU) has over 46,000 members, 39 branches within Australia and is worth more than $940 million dollars (ADCU n.d). The ADCU primarily focuses on the defence community however they openly welcome the general public, unlike other unions which are exclusive to specific communities. They are devoted to improving the lives of their members by being reliable, helpful as well as understanding and listening to their members in order to creating appropriate services for them. The ADCU understand and support member’s rights as well as providing a high quality standard of customer service.

Australian Defence Credit Union
ANZ
$450,000 - 20 year home loan
Monthly Repayment: $3,119.39
Interest Rate: 5.59% p.a.
Interest Type: Variable
Comparison Rate: 5.60% p.a
Establishment Fee: $400
Terms and Conditions: if the interest rate increases by 1% p.a. the monthly repayment will increase by $260.77. Monthly Repayment: $3,197.86
Interest Rate: 5.88% p.a
Interest Type: Variable
Comparison Rate: 5.92% p.a
Establishment Fee: $600
Terms and Conditions: if the interest rate increases by 1% p.a. the monthly repayment will increase by $264. 30,000 - 5 year car loan
Fortnightly repayments: $276
Total interest: $5,880
Fortnightly repayments: $284.24
Total interest: $6,951.20...

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