When it comes to banking, there are a lot of options out there. But if you’re looking for an institution that puts its members first, a credit union is the way to go. Here are five advantages of using a credit union.
Credit unions typically have lower fees than banks. This can include everything from monthly maintenance fees to ATM withdrawal fees. For example, in some credit unions, there is no monthly maintenance fee as long as you keep your balance above $5. Those lower fees can add up to big savings over time.
Better Interest Rates
Credit unions also tend to offer better interest rates than banks on both savings and loans. For example, right now the national average for a savings account at a credit union is 0.48%, while the average at a bank is only 0.09%. That may not sound like much, but it can make a big difference over time, especially if you have a large balance in your account.
When you bank with a credit union, you’re not just another number. Credit unions are typically smaller than banks, which means you’ll get to know the people who work there. They’ll be able to provide you with more personalized service, and they’ll be more invested in helping you meet your financial goals.
Focus on Serving the Community
Because credit unions are nonprofit organizations, they don’t have shareholders to answer to. That means they can focus on serving their members and giving back to the community instead of maximizing profits. For example, some credit unions offer free financial counselling services and low-cost loans for members who are experiencing financial hardship. They might also sponsor local events and donate to local charities.
Easy to Join
Joining a credit union is typically easier than joining a bank. For example, some credit unions only require that you live or work in their geographic area, while others only require that you belong to a certain organization or profession (such as teachers or healthcare workers). And many will let you join even if you don’t meet any of their specific requirements—you just have to pay a small one-time fee or deposit.
So, if you’re looking for an institution that puts its members first, give your local credit union a call—you might be surprised at how easy it is to become a member and start reaping the benefits!
When it comes to banking, there are pros and cons to both banks and credit unions. It’s important to compare your options and choose the one that best suits your needs. But if you’re looking for an institution that puts its members first, offers lower fees and better interest rates, and is focused on serving the community, then a credit union is probably the best choice for you!
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Author: Lizzie Weakley
Lizzie Weakley is a freelance writer from Columbus, Ohio. In her free time, she enjoys the outdoors and walks in the park with her husky, Snowball.