3 Benefits of a Credit Union

People often ask, "What is a credit union?"

Well, just like banks, credit unions are financial institutions that offer a range of products and services to help you reach your financial goals.  And like banks, credit unions are federally insured. The National Credit Union Administration (NCUA) insures deposits at credit unions up to $250,000 per individual depositor, providing peace of mind for members. Credit unions also offer a range of benefits for their members, including lower fees, better rates and personalized service. In this article, we’ll explore the top advantages of joining a credit union.

3 Benefits of a Credit Union

Owned by the people, for the people.

Credit unions are nonprofits that are owned by you, the member, instead of being owned by shareholders. Credit union membership means becoming part-owner of a not-for-profit financial cooperative. As a member, you have a voice in how the credit union is run and access to exclusive financial products and services.

Joining a credit union and becoming a member is simple. Most credit unions have membership eligibility requirements based on where you live, work or your community involvement. Once you meet the criteria, you can open an account and start enjoying the benefits of membership.

Attractive rates.

Another major perk is the ability to access lower loan rates and higher savings yields, maximizing the value you receive as a member.

Since credit unions are nonprofits, they can offer financial products and services at a more cost-effective rate for members. This includes lower loan rates on products like auto loans, personal loans and mortgages, helping you save money over the life of your loan. Banks, on the other hand, need to make money for shareholders. At a credit union, the net proceeds are distributed back to the members in the form of lower fees, lower interest rates on loans and higher interest rates on savings - helping you save money when you borrow and earn more when you save.

Local and personalized service.

While both credit unions and traditional banks offer similar banking services, their approach to customer service and community involvement often differs. Credit unions are local organizations that work to serve the community they are in. They strive to build relationships with their members, seeing each person as an individual and not a number. They work to make informed decisions quickly, in order to provide you with the products and services you need in the moment.

Credit unions also strive to make banking accessible, whether you prefer visiting a local branch, using online tools or managing your accounts on the go with mobile banking.

Credit unions are a great choice if you are looking to have a voice in the way your financial institution is run, save money on interest and fee expenses, earn more on your savings, build relationships with those who serve you, and get timely decisions on your financial applications.

Credit unions are also known for their outstanding customer service. As a member, you receive personalized attention from staff who are committed to helping you achieve your financial goals. Unlike large banks, credit unions focus on building lasting relationships and providing support tailored to your needs. Our members consistently rate our customer service highly, citing quick responses, knowledgeable staff and a genuine commitment to helping the community.

Advantages of Credit Unions

In summary, the advantages of joining a credit union include member ownership, competitive rates and personalized service. These benefits make credit unions a compelling choice for anyone seeking a more community-focused financial institution.

Have questions about credit union membership? Chat with us online or visit a branch to learn how to join.

All materials contained herein are for general informational purposes only and do not constitute tax or legal advice.