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Banks vs Credit Unions Account

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    Banks vs Credit Unions Account

    Anytime banks are making track record profits and the customers are paying higher charges, lots of people are looking for financial institutions that will assist them save money. The type of institution may be your local credit union.

    Credit unions provide several financial services that help people increase their own incomes and improve their savings, usually with less or lower charges than standard banks. But these types of institutions also have down sides which make them unattractive for some bank customers.

    What exactly is Credit Union?

    Credit unions are comparable to traditional banks or in other words both institutions offer financial services to customers. Credit union users, like bank customers, have access to check and saves, loan services, and credit cards.

    However, credit unions are different from bank ways:

    One major difference is the fact that a credit union is not really for profit organization. Because credit unions function as not-for-profits, they can offer you higher interest rates on savings accounts, and smaller interest rates on loan services and credit cards.

    Benefits of a Credit Union

    If you have the requirements, credit unions have a lot to offer you more than a normal bank:

    1. Higher Interest Rates

    Credit unions pay high interest rates on all the deposit accounts which includes money market, savings, and checking accounts. All these rates range from 5 to 10 times the amount of interest you will get from your local bank.

    2. Lower Loan & Credit Card Rates

    Credit unions offer you the same as banks, but they are more affordable. Many people use their local credit union for car acquisitions because the rate is usually lower

    3. Lower Fees

    Credit unions have number of charges compared to banks. The truth is, a lot offer checks, cash withdrawals, and electronic transactions free of charge. Many also provide checking accounts with no minimum balance and without having a monthly account service charge. This may save you lots of money a year. Note that Credit unions do charge for bounced check and also overdraft fees like banks, but the amount is usually less.

    #2
    one more benefits of credit union account
    Voting rights:
    If you are a member of a credit union, you have the right to vote on important decisions like the selection of board member, etc. your opinion is important for them. Because you are a member as well as co-owner of a credit union.

    Comment


      #3
      I have also found that credit unions tend to operate on a more personal level. The conventional banks tend to be all about the numbers.

      If you do not make this much money or have this much in your account, we cannot offer you better rates despite the fact that you have been a customer with them for a number of years.

      Credit unions on the other hand, will work with you and find you the best options for your situation.

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        #4
        We have an informal credit union in our office for employees only. The life is 1 year and the total funds are distributed at the end of the year. Members deposit an amount every 15 days that is loaned to members in need. It is informal because it is not registered with the SEC. But it was in existence for 30 years already.

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          #5
          I think any financial institution will be successful if govern and patronize by it's member properly. Sometimes it is abused by its own board officials who are consuming all the benefits without returning the favor. Its too bad to see credit union that never soared high and defeated its purpose. I would agree that it has less charges compared to others but only a few survived.

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