Is there a difference between savings in a credit institution and savings in a credit union?

Published: 11/4/2018 Modified: 12/1/2021
Deposits in credit unions are not covered by a guarantee scheme

The key difference between the two is reflected in the fact that household deposits in credit institutions are covered up to the amount of EUR 100,000.00 per person (for more information see Croatian Agency for Deposit Insurance), in contrast with household time deposits in credit unions where no such guarantee is provided. The main reason for this stems from the concept of operation of credit unions which relies on business with credit union members which means that no deposit or loan may be negotiated in a credit union unless you are a member of that union. Credit union members may participate in the supervision of operation and in decision-taking as members of a credit union's general meeting (one vote regardless of the amount of membership holding) in contrast with savers in credit institutions who do not have such an opportunity at their disposal.

For more information on savings, click here.