Credit Union vs. Bank: Why Central Indiana Residents Choose Encompass Credit Union
If you live in Tipton, Clinton, or Howard County, you have plenty of options for where to keep your money. From massive national bank chains to online-only fintechs, the choices can be overwhelming. But for many Hoosiers, the decision comes down to a single fundamental question: Why choose a credit union over a bank?
While they may offer similar products—such as Checking Accounts, loans, and debit cards—the difference lies in their purpose.
Whether you are looking for a new financial home or you’re already one of our valued members, understanding this difference can help you save money, reach your financial goals, and invest back into our local Central Indiana community.
The Core Difference: Members vs. Customers
The biggest difference between a bank and a credit union is ownership.
Banks are for-profit corporations. Their primary goal is to generate profit for shareholders, who may not even live in the same state (or country) as you.
Credit Unions like Encompass are not-for-profit cooperatives. We don’t have shareholders; we have members.
When you open an account with us, you aren’t just a customer—you’re a part-owner. This isn't just a feel-good slogan; it changes how the money flows. Instead of sending profits to Wall Street, we return them to you in the form of lower interest rates on loans, higher yields on savings, and fewer fees.
1. Better Rates and Lower Fees
Because we operate as a not-for-profit, our "bottom line" is your financial well-being. This structure allows us to offer competitive pricing that big banks often can't (or won't) match.
Borrowing: Whether you need a new car or a mortgage, credit unions typically offer lower APRs than traditional banks. (Check our current Rates & Fees to see how we stack up).
Saving: We work hard to keep money in your pocket by minimizing the "nickel and dime" service fees that are common at big banks.
For Our Existing Members: Are you fully utilizing your rate advantage? If you have an auto loan or credit card balance with another lender, you might be paying more interest than necessary. Compare your current payments with our Lending options to see whether refinancing could save you money each month.
2. Community "Full Circle"
Our motto is "Where Community Comes Full Circle," and we take that seriously. When you bank with Encompass, your deposits are reinvested directly into the local economy.
Your savings might fund a neighbor’s small business in Frankfort, help a young couple buy their first home in Tipton, or finance a family car in Kokomo. Unlike national banks that may lend your deposits to corporations thousands of miles away, Encompass keeps the capital right here in Tipton, Clinton, and Howard counties.
3. Big Tech with a Hometown Touch
A common myth in the "Credit Union vs. Bank" debate is that you have to sacrifice convenience to join a credit union. That might have been true decades ago, but not anymore.
At Encompass, we offer the robust digital tools you expect—including Mobile Banking, Remote Check Deposit, and Online Bill Pay—paired with the kind of personal service you can only get from neighbors who know your name.
Checking Accounts: From "Worry Free" options to high-yield accounts, we have day-to-day banking solutions that fit your lifestyle.
Savings Accounts: Whether it’s a Christmas Club or a long-term Certificate, we help your money grow safely.
Already a Member? How to Maximize Your Membership
If you are already part of the Encompass family, you know the value of local service. But are you using all the tools available to you?
Financial health isn't just about where you bank; it's about how you plan. We offer free interactive tools to help you make smarter decisions without the guesswork.
Planning a big purchase? Use our Financial Calculators to see exactly what you can afford or how much you could save by refinancing a mortgage.
Need a financial checkup? Stop by a branch. Because our staff isn't driven by aggressive sales quotas like many bank tellers, we can offer honest advice tailored to your life stage.
Who Can Join Encompass?
While big banks are open to anyone, credit unions have a "field of membership." The good news is that joining Encompass is easy for almost anyone in our region.
You are eligible to join if you:
Live, work, worship, or attend school in Tipton, Clinton, or Howard County.
Are a business or organization located in these counties.
Are a relative (spouse, child, parent) of an eligible person.
The Verdict
Choosing between a credit union and a bank comes down to priorities. If you want a financial institution that answers to shareholders, a bank is fine. But if you want a partner that answers to you, invites you to be an owner, and invests in the Central Indiana community we all love, the choice is clear.
Ready to experience the Encompass difference?Join the Family Today.