$: What is the Difference Between a Bank and Credit Union?

I remember opening my first bank account a long time ago, I appreciated that the heavy doric columns that greeted me were symbols of tradition. The big balustrades symbolized stability. Banks are not what they were a long time ago. I wrote about the ongoing frustration with bank induced errors, in one instance I recommended to the administrator to fire their bank. (She hasn't.)

Earlier today, I drove to the parking lot of Lansdowne Mall to look for a 20 foot container re-purposed as a branch of Tangerine Bank (owned by Scotiabank). I spoke to the representative and was relieved to know that they had sound client identification and verification procedures in place. You can open an account online but you still need to come in with your ID and your SIN.
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The rest is done electronically or you can go to the ATM machines of any Scotiabank (but you cannot transact with a teller).

Better interest rates notwithstanding, how many of you would open trust accounts with Tangerine Bank?
In our classes like  Law Office Accounting and Trust Accounting, we talk about the difference between a bank and a credit union. These two groups are used by law firms the most. Here is a list of banks who are licensed to operate in Canada. Here is a list of credit unions who are licensed to operate in BC.
Do you prefer doing business with a bank or credit union? Is the insurance coverage enough to offset the lack of credit union branches?

The expansive definition of financial institution is:

• (a) an authorized foreign bank within the meaning of section 2 [Definitions] of the Bank Act (Canada) in respect of its business in
• Canada or a bank to which the Bank Act applies,
• (b) a co-operative credit society, savings and credit union or caisse populaire that is regulated by a provincial Act,
• (c) an association that is regulated by the Cooperative Credit Associations Act (Canada),
• (d) a company to which the Trust and Loan Companies Act (Canada) applies,
• (e) a trust company or loan company regulated by a provincial Act,
• (f) a department or agent of Her Majesty in right of Canada or of a province where the department or agent accepts deposit liabilities in
• the course of providing financial services to the public, or
• (g) an organization controlled by a financial institution.

As you can see, there are other financial institutions. Odlum Brown for example, are used by lawyers acting as a fiduciary and are managing funds held in such an accounts. Let me leave you with this thought, given your firm's needs, what makes for a good financial institution.

​To firms looking for competent trust account staff, write or call me at 6046852727.