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5 Reasons to Bank with a Credit Union

5 Reasons to bank with a credit union with lower fees and better interest rates. www.thefinancetip.com

-5 Reasons to Bank with a Credit Union-

Majority of people use popular banks like Bank Of America, Wells Fargo, US Bank, and Chase for their personal finances. We normally choose these banks due to brand and the pure fact that they are everywhere, convenience is what were used to when we need to deposit or withdraw.

However, have your ever considered banking with credit union banks? Have you heard that they have better benefits as opposed to these other popular banks? Some of it may be true.

Here we are going to break down 5 reasons to bank with a credit union. With over 7,000 credit unions across the country, there are plenty of opportunities to find a credit union best suited for your needs with plenty of perks

What is a credit union? A credit union, though, exists in principle to serve a community of people tied by a “bond of association,” which may be based on geographical region, employer, membership to another association, faith or other factors. They are also a non-profit organization.

1. They offer lower fees and interest rates

Have you actually sat down and looked over the fees of your checking and savings account? It might be a good idea to look at them now, so you understand where you could save and avoid future fees.

Credit unions generally offer much lower fees than the uber-mega-banks, who make tons of money of your monthly fees and other amounts. They generally have higher interest rates on savings and lower fees offered to their members due to the amount of flexibility they have as non-profit organization.

If your also looking to transfer your high balance credit card to a lower interest card, credit unions normally offer much lower interest rates as opposed to more popular cards out there.

2. They offer superior customer service

Credit unions are built in service of the local community. They have a common mission to provide members with affordable financial services, without the motives to maximize profit. Customers are more satisfied with the support they receive with this type goal in mind.

3. Impact Local Community

As credit unions are considered local banks, they understand the economy depends vastly on how well small businesses are doing around them. So they have a vested interest in helping the community grow by helping small business around them thrive.

Credit unions normally understand all the smaller aspects on how their community runs rather than a large giant bank. They deal face to face with their local customers daily and know what they need. This helps boost local community and economy.

4. Credit decisions made locally

Mortgage loans, car loans and credit approvals through larger banks have a certain mindset with receiving applications. They undergo stricter processes to filter out unqualified applicants. With credit unions, they are a bit more flexible with credit decisions, since they are smaller and have better focus what the customer needs.

With the size of larger banks, they tend of have to deal with the health of their national, if not global aspects of their business. This is why community banks fill in the gaps on a local level.

5. They reinvest rather than gamble with your money

As most of you understand, that larger banks are out to maximize profits. They reuse the money they receive from you and invest in their own ventures, to make returns with some level of risk. Of course, your money is safe but you normally don’t see any benefits from this type of activity.

With credit unions, they would invest the money back into the community into forms of loans and investments, which ultimately helps the community they live

5 Reasons to bank with a credit union
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5 Reasons to bank with a credit union. Save on lower fees and higher interests on saving accounts. www.thefinancetip.com

 

 

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Kim Lee is a UNLV graduate with a degree in Biotechnology. He has natural attraction toward technology, with a passion of servicing and helping people. Finance has always been his main interest and hobby, as he likes to dwell into small business and investing ventures. He writes and shares what he learns on the way, while he tackles on a life as an entrepreneur.

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