FAQs

What is the difference between a credit union or a building society and a bank?

Credit unions and mutual building societies have a mutual structure and their focus is on their members (customers). Anyone can join and become a member. Each member of a credit union and mutual building society owns the organisation they belong to, and has a vote in the organisation’s governance.

This means we focus on community banking services that benefit our members.

Unlike banks, credit unions and mutual building societies aren’t publicly-listed companies and so they don't seek to maximise profits to pay external shareholders. Instead, they put their profits back into outstanding customer service, better products, competitive mortgage rates and fairer, competitive pricing for their members. Each credit union or mutual building society sets its own rates and services, which allows them to tailor their products to the needs of their community.

Quick statistics on credit unions and mutual building societies:

• They offer a full range of consumer banking services, including access to national ATM networks, online banking, savings and loans;
• They are focused on benefits for their members – and not profits for shareholders; 
• They consistently have the highest levels of customer satisfaction in the Australian banking market; 
• They provide professional and competitive banking and offer competitive rates and pricing for 4.5 million members across Australia; 
• They deliver better service, fairer fees and a true community focus.

Are credit unions and building societies safe?

Yes. All credit unions, mutual building societies and banks are Authorised Deposit-taking Institutions (ADIs), and are regulated in the same way as Australian banks. They are regulated by the Australian Securities and Investment Committee (ASIC) under the Corporations Act, and by the Australian Prudential Regulation Authority (APRA) under the Banking Act 1959.

All ADIs - that is, all Australian credit unions, mutual banks, mutual building societies and banks - meet the same strict, legally-enforceable standards, under the Banking Act and strict oversight by the Australian Prudential Regulation Authority (APRA). APRA’s strict rules on safety and capital continue to apply to all banks, building societies and credit unions to the same high standards.

Deposits in all ADIs of up to $250,000 are guaranteed by the Federal Government on a permanent basis from 1 February 2012. 

How can I save with a credit union or building society?

Independent analysis by InfoChoice commissioned by Abacus showed that you could save over $30,000 over the life of a loan if you choose a credit union or building society rather than a major bank.

The analysis was based on advertised standard variable home loan rates for a 25 year, $300,000 loan. Actual savings will vary according to the size and term of your loan and future interest rate changes may affect the projected long term savings.

For more detailed information about the InfoChoice analysis, click here.

Do credit unions and building societies offer the same kind of products as banks?

Yes – and often you’ll get a better deal at a credit union or mutual building society. Credit unions and mutual building societies are focused on consumer and small business banking, and our product range reflects this focus. Credit unions and mutual building societies offer a broad range of products to suit you, including:

• competitive mortgage rates
• competitive term deposit rates
• savings and transactions accounts
• low-rate and rewards credit cards
• debit cards
• personal loans, and
• car loans

Credit unions and building societies offer very competitive rates on your savings and across their loan products. It’s important to note that each credit union and building society will offer its own products, with pricing and services tailored to their members’ needs. Use our link below to find the credit unions and mutual building societies best suited to your area and community, to compare products.

Independent websites like InfoChoice and CANSTAR CANNEX regularly feature the very competitive mortgage rates and term-deposit rates of credit unions and mutual building societies. To compare rates on InfoChoice, click here or CANSTAR CANNEX, click here.

To find a credit union or building society that's right for you, click here. 

Where can I find a credit union or building society?

Our search function will help you find credit unions and building societies in your community.  To find a credit union or building society that's right for you, click here.

Each credit union or mutual building society offers its own products to members, and sets it own policies and pricing, so our search function will give you some options to explore.