Credit unions usually stay in the background while banks grab all the attention, and a lot of people can’t really say how the two differ. Maybe the monthly fees have worn someone down. Or a car loan is on the horizon and the rate quotes look steep. Either way, a credit union starts to seem worth a look. And then the questions start piling up.

Here’s how credit unions work, who’s eligible to join, and what to compare. A few surprises too. Give it a read before you open an account, and things’ll go smoother.

What makes it different from a bank

A credit union is owned by the people who use it. Those people are the members. Banks are usually owned by investors who want a profit. Credit unions operate as not-for-profits, so anything they bring in past expenses tends to go back to members through lower loan rates, higher savings rates, or fewer fees.

Simple enough. Real life is messier, though, and on some products banks do beat credit unions. Who gets in

This is the part that trips people up. Credit unions usually have membership rules. It might come down to where you live, what you do for work, a school you attend, or some group you belong to. A few of them will take almost anyone. Others stay pretty tight.

Check eligibility first. It’s on the website, typically right next to the “join” button. If the rules don’t fit, nothing else matters. Also, in some places, once one person qualifies, family members can join too.

First figure out who can actually join The People’s Federal Credit Union, or any credit union for that matter. That’s your starting point.

Is the money safe?

Federal credit unions are backed by the National Credit Union Administration (NCUA). Deposit insurance covers up to $250,000 per person, per ownership category. That’s close to what most bank accounts get through the FDIC.

Any credit union you’re considering, look it up with the NCUA tool on their site. That’s how you confirm it’s insured. A logo alone proves nothing. It takes a minute, so just do it.

Share account

Nearly every credit union requires new members to open a basic savings account first. It’s usually called a share account. You deposit a small amount, sometimes as little as five dollars. That deposit basically makes you a part owner. Only then can you get checking and other products.

Fees and rates

Credit unions usually come out ahead. Fees on checking accounts are lower, and auto loan or credit card rates can be better as well. None of that’s a sure thing. Line up the real numbers side by side and see.

Take a look at:

• What monthly fees come from, and why you pay them
• Overdraft fees
• Rates on loans for what you actually need
• Savings rates
• Out-of-network ATM fees

Apps and tools

Tech varies a lot across credit unions. Some have solid apps with mobile check deposit, instant transfers and card controls. Others are a couple years behind. Before joining, grab the app and skim recent reviews. If you do most of your banking on a phone, this matters more than you’d think.

That bottom line

A credit union isn’t always the better choice, and it’s not a big risk either. It’s simply a different type of bank, one with its own rules and its own advantages. Find out if you’re eligible to join, make sure it’s insured, compare real costs, then try out the basics. Once you do that, the decision usually comes down to what fits your everyday life.