Get To Know Credit Unions and How They Can Help You Save Money
Credit Unions
When it comes to finances, many people are unsure about the difference between credit unions and traditional banks.
Credit unions have been around for over 100 years and are an important alternative to big banks.
Credit unions are not-for-profit financial institutions that are owned and operated by their members.
This means that the decisions made at a credit union are centered around the needs of their members rather than their bottom line.
In this blog, we’ll dive into what credit unions are and how they can help you save money.
Members, Not Customers
As previously mentioned, credit unions are owned and operated by their members.
When you join a credit union, you become a member-owner.
This means you have a say in the decisions the credit union makes and current policies.
The credit union focus is on members, not shareholders.
Credit Unions make decisions oriented around their members’ needs.
Lower Fees and Interest Rates
Credit Unions generally offer lower fees and interest rates compared to banks.
They are not-for-profit, which enables them to offer low-interest rates on loans and high-interest rates on savings accounts.
In addition, credit unions do not charge fees for the use of their services.
Simply put, when you join a credit union, the annual fees and interest rates are much lower than they would be at a bank.
Personalized Service
Credit unions typically provide more personalized service than banks.
As a member of a credit union, you are able to speak with someone who knows you on a personal level and consider your individual circumstances and financial needs.
Credit unions will consider your credit history and financial situation and provide guidance to ensure you make the best decisions that benefit you in the long run.
You will be more of a person than an account number to them.
Secure and Insured
Credit Unions are secure and insured. Credit Unions are backed by the National Credit Union Share Insurance Fund (NCUSIF), which is administered by the National Credit Union Administration (NCUA), a U.S. government agency.
This means that your deposits (up to $250,000) are insured just as they would be at a bank.
You can trust Credit unions with your money.
Community Focused
Credit unions are a part of your local community. Credit unions invest more in local communities than banks do.
This is because the credit union model was created to serve the financial needs of a specific community first.
As opposed to big banks that put shareholders first, credit unions put the communities they serve first.
They invest in community development and education programs and work for the financial stability of individuals and small businesses within the community.
Final Thoughts
As we’ve seen throughout this post, credit unions, like the Credit Union of Denver, are a great alternative to big banks.
Credit unions are community-focused, not-for-profit financial institution that provides personal service, lower fees, and interest rates and are secure and insured.
It’s worth considering joining a credit union for the excellent benefits they offer.
If you’re interested in learning more about joining a credit union, visit a credit union near you or research and compare them online.
Category: Banking
