It can require some research to decide whether opening a new account at a bank or a credit union would be the better option. Loyal bank customers don’t want to make the switch to a credit union but there are a lot of benefits associated with credit unions that you can’t find anywhere else. Let’s take a look at some of the differences if you happen to be in need of a new credit union checking account.
When you sign up with a credit union you become a member. At a bank you are considered a customer and not a shareholder. Banks exist to make profit for the stockholders that are involved with the company. Credit unions function as not-for-profit entities that will distribute profits to the various members. This might not be paid out as cash but benefits can include lower interest rates and lower fees overall.
Many people believe that banks are more convenient because there is a larger network of locations to deal with. This actually is not the case. Many different credit unions will belong to a large network of locations. These locations might not be for that sole credit union but you can do business there. Your availability really depends on where you live and where you will be doing the majority of your banking.
Credit unions offer most of the same products that you will find at a bank. This includes credit cards. You might be shocked to find out that the interest rates that are part of your local credit union’s offers are much lower than what a bank would offer up. Many credit unions will offer cash back or reward programs as well.
Most credit unions offer free ATM transactions. Many banks are now providing ATM …