But what exactly is a credit union? Credit unions, unlike banks, are owned by the members they serve. This means that any earnings can benefit credit union members through lower fees and greater savings rates.
Many credit union members like the concept that their checking and savings accounts can help other credit union members acquire mortgages to buy their first homes or business loans to start their dream firms. Because credit unions are non-profit banking entities, their focus can be on providing better services to their members. Exploring a checking account houston tx, is a practical step to consider when comparing the advantages of a credit union over a bank. This can assist you in a variety of ways.
Various Service Offerings
A credit union’s size does not necessarily imply that it offers fewer services than a bank. Credit unions frequently offer overdraft protection, credit cards, member business loans, vehicle loans, mortgage loans, home equity loans, ATMs, electronic banking, credit unions, and other services in addition to financial education and counseling. Of course, some credit unions do not offer as many products and services as other financial institutions, but they do serve a wide range of banking needs.
Personalized Customer Service
Through individualized care, credit unions may go above and beyond to help their members succeed financially. Because credit unions are non-profit organizations, they can concentrate on assisting members with their specific financial needs. Some credit unions also offer counseling and training to members to assist them grasp complex financial issues.
Ease Of Service
Call a corporate bank and make a simple request, such as checking the amount of a savings account. Count the number of annoying phone tree menus you have to wade through before speaking to a real person who can answer your question. You win when you become angry and slam the phone down!
For-profit banks have a bad reputation for poor customer service and out-of-date policies. Obtaining information about financial services such as credit repair or vehicle loans requires hours of waiting. Credit unions, on the other hand, offer simple services and actual, living people who can answer questions, give recommendations, and help you comprehend the complex world of finances.
Online Banking Is Everywhere
Only corporate banks could afford online banking in the Internet’s early days. Your gerbil can now get his own webpage. The internet is ubiquitous, and credit unions have jumped on board. Online bill pay, direct deposit, and account balance checks are just a click away. Credit unions are becoming more linked with e-commerce platforms such as PayPal and Square, making transferring and receiving money electronically easier than ever.
Individual smartphone apps and other gimmicks don’t offer much added value. A dissatisfied 67% of young people feel bank mobile banking services fall short of their expectations. Because most individuals no longer handle paper checks, online banking is all that most consumers require.
Credit unions exist to serve their members. They distribute their profits to its members in the form of dividends. Because their members are also paying for their services, they don’t have any incentive to charge exorbitant interest and fees.
Credit unions also provide attractive rates on savings and CDs. They can return that money to their investors, who are the people who do their banking with the credit union because they don’t have to siphon off money to pay shareholders. Compare the interest generated on a credit union checking or savings account to that of a for-profit bank. Then, go to a credit union and open an account. You’ll be grateful later.
Considering the above reasons, a credit union over a traditional bank can offer numerous financial benefits and a more member-centric approach to banking.