Are you thinking of switching your checking account to a credit union? Want to know what the difference between credit union and bank is?
What are the advantages of credit unions?
As a credit union member, you can expect to have a much more rewarding and meaningful experience. Because credit unions are member-owned and not-for-profit, they are more attuned to the needs of their members. Investors or their bottom line does not drive them. Credit union members own a piece of the institution. The revenue created through operations gets returned to members through better rates, technology enhancements, and more.
From the outside, banks look sophisticated and glamorous. There’s all that hype, glossy advertising, and flashy logos. But, when it comes down to it, those things don’t matter much. What counts is how each institution will look after your money and what kind of service you can expect from them. And, while banks and credit unions offer nearly identical services and account choices, there are some subtle differences.
Credit Union Checking Account Advantages
Let’s look at how having your checking account at a credit union differs from using a bank for the same purpose.
Account fees
To the average consumer, banking with a large institution may not seem like a bad deal on the surface. While they’re happy to hold onto your money and might even be super-helpful in setting up your account, expect to get hit with fees – just for having an account! And these fees don’t come cheap. According to a MoneyRates survey, the average monthly maintenance fee for a bank checking account is $12. That’s nearly $150 coming out of consumers’ pockets each year!
On the flip side, many credit unions offer free checking or make it very easy to qualify to have the fee waived. This ease of access gives you the ability to set up your account and keep it running without costing you a dime.
Credit unions tend to have less overhead than banks, so there is less reason for them to try squeezing more money out of each consumer. Why, then, would you fork over your hard-earned money to help keep a bank profitable when you can use it to help your net worth grow?
Fewer strings attached
Banks will happily accept your money – so long as you’ve got enough of it, that is. Most big banks won’t allow you to open a checking account unless you have a minimum balance of several hundred dollars. In contrast, an incredible 76% of credit unions surveyed by a Bankrate Credit Union Checking Survey reported that they have no minimum balance requirements at all.
If you’re looking for a place to park your money without having to jump through an endless series of hoops, there’s no question here!
Credit unions are government-regulated
Like banks, credit unions are regulated by a governing authority. This regulation means a federally insured credit union, just like a federally insured bank, offers federally insured accounts up to $250,000. This means your money is protected no matter which kind of institution you choose for your checking account.
For credit union members, though, it gets even better. Credit unions face more restrictions on their investments and loans than banks do. This means your credit union has to be super careful with your money. They can’t make any rash decisions or investments that might hurt you as a member.
For credit unions, it’s all about doing what’s best for the membership.
Superior service
When you’re banking with family, you don’t have to worry about overworked tellers, curt managers, or representatives who are indifferent to your individual needs.
When you stop by your credit union, you’ll be greeted with friendly, familiar faces and representatives who care. They’re always ready and willing to help you with whatever you need – whether a question about your checking account, some personal finance advice, or direction in a major life purchase.
They’ve got your back – always.
Why choose a credit union for your checking account?
The answer is obvious. With lower fees, fewer strings attached, and better service, it’s the best place possible to park your money!
Contact us today and start saving your money for a better tomorrow.
