What are the Advantages of a Credit Union Over a Bank?
Do you want to find an institution that you can trust with your financial future?
Are you struggling to choose between a credit union and a bank for your car or home loan?
Credit unions have nearly 10 percent of the country’s household savings. There are many misconceptions about credit unions. In a time where people have definite trust issues with big banks, it’s beneficial to look at your other option.
Credit unions have become increasingly popular and for good reason. Check out these five benefits of a credit union over a bank.
1) Better Customer Service
Credit unions’ main objective is to serve their members. One of the benefits of choosing a credit union over a bank is that the former are not-for-profit financial cooperatives which means there isn’t pressure to maximize profits.
Credit unions are more focused on the need of the customer. Customer satisfaction is simply higher with credit unions, with personalized service being a major benefit, including planning for financial well-being today and in the future.
2) Lower Interest Rates
Credit unions have lower interest rates on both credit cards and loans than banks. Credit unions also have higher interest rates on savings, checking, and CDs. Only about 10% of credit cards from credit unions charge an annual fee. The average interest rate on a bank credit card is 12.24% while a credit union credit card is 9.37%. Another benefit to credit unions is that they typically charge lower late fees than their counterpart.
3) Owned by Members
Credit unions are owned by members instead of stockholders. Unlike banks, credit unions pass their profits down to their customers in the form of lower interest rates. Like banks, they accept deposits, make loans and offer an array of financial services.
When you open an account with a credit union, you are actually more than just a customer, you are a member and shareholder. Members of credit unions are also given a vote when determining how it is managed. Members share a common bond call a “field of membership.”
You can join a credit union near your home or work for added convenience. Do your research to see the ones that fit your needs the best.
4) Community Driven
Another one of the great benefits of a credit union is the fact that they are community driven. Credit unions get involved and serve their local communities. The Credit Union for Kids Program has generated over 170 million dollars for Children’s Miracle Network Hospitals.
Credit unions can also provide financial education, in-school credit union branches, and small business financing, all benefiting their local communities.
5) ATM Access Free of Charge
As a credit union member, you have nationwide access to ATMs. Many credit unions are part of CO-OP ATM which is the largest ATM network owned by credit unions.
What does this mean for members?
Fee-free and convenient access to your money. If you do have to pay a fee, you are typically reimbursed for that transaction fee incurred while using ATMs that are out of network.
Want to Know More Benefits of a Credit Union?
There are many benefits to becoming a member of a credit union instead of a bank. You become part of the credit union family instead of just a customer and number. You receive affordable financial services where members help members save and borrow money for such things as homes and car loan in a safe and trustworthy environment.
Are you ready to apply for a loan or have any questions? Contact us today for assistance.
Rockford Bell Credit Union is a $30 million financial institution with over 4,300 members serving Winnebago, Boone, Ogle, Stephenson, Jo Davies, Carroll, Whiteside and Lee Counties and over 35 different employee groups.