Banks and credit unions provide many of the same financial services, but their ownership, membership rules, fees, rates, technology, and branch availability can differ. A bank is generally a for-profit business owned by shareholders or private investors. A credit union is a not-for-profit financial cooperative owned by its members. That structural difference can influence how…
401a and a 401k can both help employees save for retirement, but they are usually designed for different workplaces and give employees different levels of control. The most practical difference is this: a 401(a) arrangement commonly uses contribution rules set by the employer, and participation or employee contributions may be mandatory. A 401(k) lets an…
A SEP IRA and a traditional IRA are not interchangeable, even though both can hold similar investments and generally provide tax-deferred growth. The biggest difference is who establishes and funds the account. A traditional IRA is an individual retirement account that you generally fund with your own money. A SEP IRA is a traditional IRA…
A prepaid card and a debit card can look almost identical when you use them at a store. Both may carry a payment-network logo, work online, allow ATM withdrawals, and prevent you from borrowing in the way a conventional credit card does. The important difference is where the money comes from. A debit card is…
A money market fund and a money market account may sound like two names for the same product. They are not. A money market account is a deposit account offered by a bank or credit union. Eligible balances are generally protected by Federal Deposit Insurance Corporation or National Credit Union Administration insurance within applicable limits…
Term life insurance and accidental death insurance can both pay money to beneficiaries after an insured person dies, but they are not interchangeable. The main difference is the cause of death. Term life insurance generally pays the death benefit when the insured dies during the covered term, subject to the policy’s exclusions and conditions. Accidental…
A mortgage recast and a refinance can both lower your monthly mortgage payment, but they accomplish that goal in fundamentally different ways. A recast keeps your existing mortgage and recalculates the required principal-and-interest payment after you make a substantial principal payment. A refinance pays off your current mortgage with a new loan that may have…
Joint tenancy and community property can both allow two people to hold an interest in the same asset, but they are not interchangeable forms of ownership. The central difference is eligibility and legal character. Joint tenancy may generally be used by spouses or nonspouses and usually includes a right of survivorship. Community property generally applies…
Protect the property you own—without paying for coverage that belongs to the condo association. The main difference between condo insurance and homeowners insurance is the portion of the property each policy is designed to protect. Homeowners insurance generally covers an independently owned house, including its structure, other structures, belongings, liability, and loss of use. Condo…