Did You Know?
The Credit Union Advantage
While there are many local and national banks competing for your business, long-time credit union members will tell you banks really just can’t compete. Here are some of the reasons why:
Non-profit vs. For Profit
While both credit unions and banks have shareholders to answer to, a credit union’s shareholders are their accountholders. A bank’s shareholders are usually investors who may not even use the institution for their banking. Consequently, a credit union is 100% beholden to its accountholders, like you, and its profits are generally returned in the form of lower loan rates, higher savings rates and fewer/lower fees. Banks usually “make money” on their accountholders and return profits to their investors.
Fewer/Lower Fees. Better Rates.
As mentioned above, credit unions are in business for their accountholders and borrowers. Without the overhead of a large national infrastructure or the burden of returning profits to stockholders, credit unions usually offer better rates and lower fees. Same types of accounts or loans, just less expensive and more affordable – for you!
Both banks and credit unions are insured by the Federal government. Banks carry FDIC insurance, credit unions carry NCUA insurance. Coverages and guarantees are identical. Individual depositors are insured up to at least $250,000.
Technology and Access
Although banks once held a large advantage in this area, the gap is shrinking – fast! Many credit unions – such as Greenwood – have electronic banking products that are similar in function and ease-of-use. Additionally, many credit unions – again, such as Greenwood – belong to large, surcharge-Free ATM networks that allow account holders access to their funds at thousands and thousands of locations nationwide – with no ATM fees.
Today’s credit unions are far more advanced than the small operations they started out as, in all aspects except one. When it comes to personal, friendly service, credit unions still treat everyone like the valued member they truly are.