When it comes to savings, what most people are looking for today is the financial institution that can help them grow their money fast. And this is why many of them turn to credit unions from banks.
In credit unions, there are plenty of financial products and services that are being offered, so that they can help their members increase their savings. But, the beauty of opting to go for credit unions is the fact that they have lower fees compared to the banks.
There are some similarities between credit unions and banks. Both of them offer almost the same financial services to their customers. Members of credit unions are also given access to their savings account, checking accounts, credit cards, loan services and many others. When it comes to the differences, credit unions exist for their members. It means that they are owned and run by the members, unlike the banks which are owned by the shareholders. Credit unions are also a non-profit organization. They exist not just to make money and earn a profit because their ultimate goal is to provide a solution and address the needs of their members. If you become a member of a credit union, it’s like saying that you also become a part owner of the organization.
Here are some of the advantages offered by credit unions over a bank.
1. Better savings interest rates
When you join a financial organization or institution, one of your goals is, of course, to grow your money and increase your savings. In this case, a credit union is the better option for you. That is because compared to banks, they offer higher interest rates on savings accounts, checking accounts and money market. This is more than 4 times higher than the interest rates that you get from your regular bank.
2. Lower rates for credit cards and loans
Shopping for a personal loan? Credit unions could still be your best bet. It’s because they offer the same financial services as that of the banks, but the good news is that the fees or interest rates are a lot cheaper. For example, you would like to avail an auto loan. It is better to apply for that loan in a credit card for your car purchase because the rates lower compared to banks and even to dealer financing. The same is true for personal loans and credit cards.
3. Ownership by the members
Another good thing about credit unions is the fact that they are owned by the members and not stakeholders of the company. When the credit union earns, the profit goes straight to its members in the form of reduced rates, fees and charges.
4. Accessibility and growing number of ATM locations
It is not true that credit unions have a limited branch, as well as locations for their ATM. This is something that they are working on to improve the experience of their members about the organization.
5. Member focused
In regular or traditional banks, the ultimate goal is to make a larger profit, but this goal could also impact their customers. With credit unions, they aim to focus on the needs of their members before anything else. That is why if they earn some profit, they let their members enjoy the benefits in the form or lower rates
. It is the members that have the voice when it comes to decision making. There is unity in credit unions because they work to help out and serge one another.
6. Superior customer service
The customer service is one crucial aspect for credit unions, and that is why they make sure that members get the best experience and assistance from the customer services staff. The staff is more than willing to work and help out the members. They provide personalized services to establish good working relationship with the members.
If you are considering applying for a loan, credit unions are also a better option, especially when you know that you have a bad credit score. That’s because instead of denying your application right away, they try to look at the bigger picture and consider your real financial situation. They are willing to work with you despite the not-so-good credit history.