Advantages Offered by Credit Unions
Credit unions typically offer free accounts with no minimum balance requirements.
Unlike banks, credit unions aren’t driven by profits, so members aren’t saddled with unnecessary fees and strict minimum balance requirements.
Fees are generally absent.
Credit unions generally don’t charge their members fees, so you won’t have to worry about having to pay excessive amounts.
Friendliness and accessibility
Credit unions can be friendlier and more accessible on every level, compared to banks.
The goal isn’t to make more money from customers
With credit unions, members provide access to simple financial solutions without charging them a fortune. Credit unions aren’t driven by profits, so financial products and services are quite affordable.
They often offer the same services as banks
Credit unions often provide the same services as banks, at a fraction of the cost. So by choosing credit unions, you may have a viable alternative for savings, loans and investment solutions.
They are member-owned and member-run
Credit unions are democratically run, so they are free to make decisions to benefit their members. Credit unions are also non-profit, so more of the profits are shared with the owners/customers.
The rate of return on savings is generally higher
Compared to banks, credit unions generally offer higher savings returns.
There are lower interest rates, compared to banks
Because credit unions are member-owned as well as member-run, interest rates charged are significantly lower.
Most credit unions focus on community enrichment and financial education
This way, members can be assured of simplified financial solutions.
While membership depends on belonging to a particular community, most consumers are eligible to qualify for credit union membership.
There is a common misperception that in order to become a member of a credit union one needs to have a specific amount of money or belong to a certain class. It can be relatively easy to qualify for membership with a credit union.
