Wednesday, June 24, 2015, AM | Leave Comment
Deciding between using a bank or a credit union is an important choice, but once consumers choose one, they rarely have a reason to change.
Moving everything to a new account can be troublesome, but you could save money by changing to a credit union.
Check out these great reasons to check out your local credit union.
Banks are large for-profit institutions that care primarily about the bottom line. They have shareholders and the bank tries hard to make a profit for them, typically at the expense of the customer.
Credit unions, on the other hand, are owned by their members and are non-profit companies. As a member, you have the right to run for a position on the board of directors to help guide the direction of the credit union. This isn’t something that most people could do with a bank.
Lower Interest Rates
Since credit unions aren’t looking to make a big profit, they often have interest rates that are lower than you’ll usually find at the regular banks.
Check out the rates on their car loans, mortgages and credit cards. Even if you don’t plan on making a full switch to a credit union, you could still open an account with a small balance and make use of their lower interest rates.
Getting your money when you need it is essential. Most banks charge you a fee when you use an ATM that’s outside of the network.
However, credit unions don’t always have these types of charges. In most cases, they’re connected with many other credit unions across the country, and they allow the customers to make use of the ATMs at other credit unions.
For example, NASA Federal Credit Union boasts a connection to 30,000 ATMs nationwide.
Checking and savings accounts at many traditional banks are needlessly complicated. You may have a limited number of transactions, or you may have to pay a monthly fee if you don’t maintain a certain balance or make a direct deposit.
The checking and savings accounts at credit unions, though, are typically much more straightforward. You’ll find that there are fewer fees for these types of services.
If you’re currently paying a monthly fee on your checking account, you could save money by switching to a credit union.
Ultimately, you have to choose for yourself whether a credit union is a smart move for you. They’re not for everyone, and you may not get all of the bells and whistles you’re looking for in a financial institution.
However, if you check it out, you may find that it has the rates and community feeling you’re looking for.
Anica Oaks is a Freelance writer and web enthusiast. Read some of her published work on her Google+ page.