No matter who you are or what you do, there is a good chance that you have a bank account of some kind. While most people still use the big banks for their financial services, more and more people are starting to work with credit unions. In fact, credit unions in the USA now have well over 100 million members and users, a number which is only expected to keep growing.
There are thousands of different credit unions throughout the country including Dane County Credit Union. There is a high chance that your local area will feature at least a couple to choose from. So why are so many making the switch and banking with credit unions? Well, there are a few different benefits that credit unions have over traditional banks, and this article will look at three of them.
Top 3 Benefits of a Credit Union
They Generally Feature Lower Fees
When most of us use banks, we want to keep most of our money to ourselves. But unfortunately, if you bank with a large institution, there is a good chance you are paying a decent amount in fees. Charging fees are one of the primary ways that banks can make extra money and while they might only be a few dollars here and there, that can definitely add up.
These fees can include transfer fees, deposit fees, withdrawal fees, service fees, fees for overdraft and more. Thankfully, fees are generally less expensive at credit unions than they are at banks. Not only are the existent fees cheaper, but most credit unions won’t have as many fees as traditional banks, either.
They Put Customers First
Banks are for-profit and thus, they generally have it in their best interest to provide ROI to their stockholders. Credit unions, on the other hand, are not for profit and thus they work to please their members or shareholders. This means they will focus on providing great support and services to customers instead of trying to make as much money as possible.
Credit unions also are known for having great customer service and policies that are fair. Also, those with subpar credit or other financial difficulties will often find that credit unions are a lot easier to deal with than banks when it comes to borrowing money or opening accounts.
Their Interest Rates are Better
If you’re like most people, there will come a time when you will need to borrow some money from a bank or financial institution. This could be for a new car, for a home, to get a degree or anything in between. And when it comes to borrowing money, the interest rate you get can determine just how much you spend paying back the loan in full.
Many credit unions will offer cheaper interest rates for customers as they just want to cover their costs and don’t need to make a massive profit. However, not only do they offer lower interest rates on loans and such but they also generally offer better interest rates when it comes to their savings accounts or investments. They can do this because they are not focused on their profits, they can pass on the savings to you.
While most of us still use banks, credit unions are becoming a more common option for those looking for a better experience. With the many benefits they can provide, it makes sense to look at the credit unions in your area and see if they meet your needs out of a financial service provider. While there are of course some disadvantages to credit unions such as generally fewer ATMs, the pros outweigh the cons for most people.