Why A Credit Union Is A Better Choice Than Sticking With Your Bank

By - Dorothy Shah, written for Financial Newsline
So maybe you’ve had a savings account for a while or maybe you’ve taken out a mortgage for a house. If the answer is yes to one or both of this, what has your bank done for you, the long-time customer? If you’ve never looked into the benefits of a credit union, maybe now is a good time to switch. Here are some of the many benefits of joining a credit union.

Banks aim to make money for themselves, and this is a reality we have to face. This isn’t necessarily a bad thing; it’s what every single business is in business for: to make its own money. What makes a credit union different? What makes it different? Unlike banks, credit unions are non-profit in nature, and have their members’ best interests in mind. Basically, it’s a group of people dedicated to their money. You don’t have to be one of your bank’s few and selected stockholders to make important decisions – any member of a credit union can vote, make decisions, and contribute in more ways than one to the union. A credit union operates under democratic principles, as members can elect their own directors. Doesn’t this want to make you end years, or possibly decades of peonage to your bank?

As compared to banks, credit unions offer lower interest rates when applying for loans or a personal line of credit, while offering higher rates for payouts from savings accounts. Credit cards, debit cards and checking accounts can be availed of free of charge by credit union members.

There will always be doubters who think credit unions aren’t a safe venture, as they value the safety of their money. This rumor is no longer true and all credit unions now legally have to be federally insured, just like a bank. This should allay many concerns, even your concerns, if you are doubting whether to join a credit union or not.

If you’re now convinced about credit unions and how they can help, ask yourself this. Where does your money usually go to? The grocery store, clothing venues at the local mall. You can benefit more by spending wisely to go with saving money wisely. You can find yourself saving more money in case you really need it. Always research before making any important decision. And that includes finding the credit union that gives you the lowest interest rates and highest interest payouts.