Most people are curious to know about the difference is between a credit union and a bank. You may be surprised to find out that there are indeed some very substantial differences between credit unions and banks including the way they operate and who they work for.

First and foremost, is the ownership difference. Banks are owned by investors and they work to make those investors money. Khalsa Credit Union (Alberta) Limited is your local credit union. It is owned by the members of the credit union. The Credit Union, therefore, works for you. Directors who give directions to the Credit Union are chosen from amongst the members through an open, transparent, democratic process.

Where do the profits go? Another big difference between credit unions and banks is where the profits go. When you're doing business with a bank, the investors of that bank are reaping the profits of the institution. When you're doing business with a credit union the profits of that credit union are being returned to the members of the credit union in the form of lower loan interest rates and higher dividends. Members get banking services at very competitive prices.

Many people are leery of putting their funds in the hands of a credit union because they believe the credit union isn't FDIC insured the way other banks are. This isn't the case with Credit Unions in Alberta. 100% of your deposits (with interest thereon) made with credit unions in the province of Alberta are guaranteed by the Credit Union Deposit Guarantee Corporation. Additionally, the Credit Union Act provides that the Government of Alberta will ensure that this obligation of the Corporation is carried out.

More importantly, members of Khalsa Credit Union receive more personalized service than those who are members of large banks. Because credit unions tend to be smaller and cater to a select group of people, there is more personalization between the staff and the members. All products and services available at the Credit Union are designed keeping specific needs of its members in mind.