It is not uncommon for many people to be faithful to their banking brands. If you’ve worked with them for years and you’ve never had a problem, why change now, right? But where finances are concerned and you know you can get a better deal elsewhere, then why reject the possibility?
Credit unions are a very favorable choice for financing. Let’s zoom into their benefits.
They serve the interest of their members
Contrary to banks whose profit go entirely to the pocket of their shareholders, credit unions exist for its members. They are non-profit, money-making cooperatives wherein members gain from the financing ventures that the union takes. That means when the business is doing well, the members of the cooperative also benefit from low interest, fees, savings, etc.
Similar services as traditional banks
Direct deposits, checking accounts, car loans, mortgage – the same traditional services that you can find in banks are also available at your local credit union.
You get to have a vote
The members of a credit union have a say as to the general workings of the cooperative. They work together to achieve the goals of the organization and benefit from it together, unlike the exclusive, business-strict, consumer-trader relationship of banks with their clients.
They offer lower interest rates than most banks
Because the main interest of credit unions rest in the benefits of their members, they strive to keep interest rates, and other fees as minimum as possible. Bank rates are computed by a network of factors wherein they need to compete with other financing institutions or risk losing money.
Credit unions benefit their communities
Credit unions cater to achieving a positive end for their members while at the same time making sure they are able to give back to their communities. They localize their programs to extend help to specific communities and people that they know need support, much like a brotherhood.
Low or no minimum required
Banks usually limit account balances for many of their account holders. They use this fund as an investment muscle. Meanwhile, your credit union, having limited interest other than that of their members, keep no minimum balance for accounts to remain active.
“So are credit unions better than banks?” you may ask. But the answer really depends on what you need, what you intend to do with your finances, and what you expect for it in the future. Talk to our experts to have a guided consultation on your important money matters.