Adrian Nichola
Active member
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.
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.