Credit unions are regulated differently from banks and their deposits are guaranteed by a different agency. Some credit unions are able to offer fantastically competitive loan and CD rates. However, there's tremendous variability. My credit union, for example, offers the same interest rate on a 9-month CD (1.75%) as it does on a 60-month. Amazingly lame...

Thanks Paul that was very helpful as I'm looking at local credit unions.

The major difference between a credit union and a bank is who owns the institution itself. A credit union is owned by the members of the credit union and not by stock holders. This gives a credit union a few advantages as far as loan rates go as a credit union need not worry about paying dividends or maximizing shareholder value. They concerned with just their operating overhead and allows a credit union to pass on that savings to all of the members.

From my experience though, credit unions typically are less tech savvy and have fewer branch locations. At the same time I feel like the folks who work at my local credit union know me and are looking out for my best interest.

I have a couple of credit union savings & checking accounts even though I don't use them for depositing my pay check. I have always thought it is a good idea to keep a credit union account open so that you have more shopping options when it comes to auto and home loans.