Where Should You Bank? Local Credit Union Vs. Big Bank
Credit Union
Are you concerned about where you should be storing your savings? There are plenty of spaces to do so.
But how will you know that you are getting the maximum advantage of your choice? There are many ways that a local credit union is different from a big bank.
Here are some of the most important things to keep in mind.
A Credit Union is a Non-Profit Organization
Perhaps the most important factor to remember when developing a personal savings plan is whether or not you want to invest in a for-profit organization. This is the single biggest point of difference between a local credit union and a big bank. But there are others that you will need to be aware of.
At a credit union, you do have the luxury of being able to invest money without the worry of it being utilized in a manner that you won’t approve of.
This is because a credit union is generally much more able to focus on the specific needs of its members.
This is because each member has an equal stake in the credit union.
For this reason, it can offer more appealing financial solutions. These tend to consist of such incentives as low rates on loans as well as correspondingly higher rates on savings accounts.
The reason they can do this is that, as a nonprofit, there is no need to focus solely on pleasing the whims of their big-money shareholders.
Make sure to search in your area for credit unions that offer the best savings plans.
For example, if you live in Nebraska you might search for credit unions that provide personal savings plans in Bellevue, NE. Wherever you choose to back, make sure to do your research.
What Are the Advantages Offered By Your Local Credit Union?
There are a number of key advantages that your local credit union is routinely able to offer.
These should be kept in mind because they are central to the entire source of appeal that this type of institution will possess.
These are advantages that are unique to local credit unions in contrast to banks.
For example, your local credit union will tend to be able to offer much lower routine fees.
They will also be in a position to hand out better interest rates. This will generally be true in the area of both savings accounts and loans.
As a result, you may be in a much better financial position by choosing to deal with a credit union.
Customer Service is an Issue of the Highest Importance
One of the biggest issues that will decide what sort of financial institution you prefer to belong to will very likely be customer service.
This is yet another area where a local credit union may have the advantage.
They are known for providing a much higher level of customer service because they are part and parcel of their community.
Meanwhile, large national banks tend to be governed by much more stringent rules.
As a customer, you will tend to have a great deal less flexibility and pull when it comes to deciding the course of your investment.
Because a large bank is part of a national chain, they will feel less pressure to serve the needs of their local community.
Does a Big Bank Possess Any Advantages Over a Credit Union?
However, there are a few ways in which big national banks do have the advantage of a local credit union.
For example, the mobile apps and general quality of online presence do tend to be stronger and more advanced.
This is largely because a bank does need to be a national institution while a credit union is purely local.
For obvious reasons, banks also will tend to possess more available branch offices as well as a higher level of national ATM service.
They also offer online services that can be accessed on a 24/7 basis. However, many credit unions are part of a CO-OP Shared Branch network of 5,600 branches as well as over 54,000 charge-free ATMs.
The Time to Learn More About These Differences is Now
If you are serious about investing your money in a financial institution, it pays to weigh your options.
You need to know where placing your money will ultimately do you the highest amount of good.
Both credit unions and banks have numerous perks to recommend them. It’s up to you to make the choice that best fits your needs.
Category: Banking
