Have you ever wondered about the difference between a Traditional Bank vs. Credit Union? I did some research and put together some information that may help you decide to change banks!
According to FindCreditUnions.com the major difference between the 2 institutions is that a credit union is a member-owned financial institution that works a lot like a bank but prioritizes people over profit.
There are many similarities between a bank and a credit union. You can use both of these businesses for your checking and savings accounts, debit and credit cards, loans, and more. You will also have access to ATMs and additional services like money orders.
A bank is owned by shareholders and their main goal is to make a profit from all the accounts you have with them. They tend to have higher loan interest rates and lower savings interest rates.
Since a credit union is owned by its members – profit isn’t the main goal. When you open an account at a credit union you are considered a member and not a customer.
Credit unions are not for profit – so any profits go back into the community with benefits for the members with lower interest rates, fees, and more.
We don’t use ATM machines very often but I learned with a credit union you can normally use other bank ATMs and they waive the fees. The big banks only do this if you have lots of money in your accounts or pay a high account maintenance fee.
Most credit unions are local so they invest in their community and normally anyone can open an account.
Since interest rates are already so low, we have been looking into refinancing and mortgage rates to lower our monthly payment. My husband has been a member of a credit union since he was in high school and after researching the benefits and the savings, I’m pretty sure we need to visit our local credit union to see how they can help us save money.
If you have been browsing Realtor.com for a new home, visit your local credit union to see if you can they can help you get the best interest rate on a loan.
I had never considered using a credit union. We have had the same bank since we were married, but I can see many benefits to switching.
Do you use a credit union? What are some of the benefits?
Check out this blog post with tips to help you save more money each month.