Is your checking account held by a bank or a credit union? What type of institution holds your savings account? If you’re like most people, you answered both of these questions with “a bank.” In recent years, though, an increasing number of people have started turning to credit unions to help them manage their money. Check out these features of most credit unions to see if you should follow these folks to your local credit union.
Fees – Because credit unions are non-profit agencies that are owned by their members, they usually charge lower fees than banks charge. Are you used to paying a fee every time your bank does anything for you? If that’s the case, you may be ready to make the move to a credit union.
Interest Rates – Most customers will experience better interest rates at a credit union than they experience at a traditional bank. Are you borrowing to purchase a car? Check out your local credit union to see what types of interest rates they offer. Are you opening a new savings account? You may find the best place to earn interest is that same credit union.
Insured Accounts – You hear a lot of talk lately about banks being insured by the FDIC. Credit unions are not insured by the Fed. However, the NCUA (National Credit Union Association) insures the accounts held at a credit union so your money is safe in either type of institution.
Ease of Borrowing – Credit unions are typically smaller organizations than your local mega-bank. Therefore, loan decisions are given a little more personal attention. If you have an unorthodox financial situation, you may find that your credit union is much more suited to helping you borrow the money you need.
Locations – One drawback to credit unions is the smaller number of locations available for members to use. In cases where you qualify for membership with the credit union through your employer, your credit union may not even be in the same city as you are. Many credit unions work hard, though, to counteract this problem by offering phone banking, ATM fee refunds, and other conveniences.
Membership – Opening an account at most banks is open to anyone. To open an account at a credit union, though, you must be a member of a qualifying group. Some credit unions are open to members of a specific community. Others are open to employees of a specific company. Rest assured that you can probably find a credit union that you are eligible for.
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It’s true…credit unions can often offer a much better deal than banks when it comes to rates on loans or interest-bearing accounts.
Here’s how to find one:
http://www.creditfyi.com/Credit-Library/How-to-Choose-a-Credit-Union.htm
Credit Unions tend to have better rates on things I’ve noticed…