If you haven’t already noticed, banks are continuously raising their minimum account balance required in order for YOU to avoid fees along with withdrawal fees and other additional fees. Consumers are finding other ways to save money and add more value to their hard earned money.
This is where the role of the credit unions comes into play. First, you must know that customers of the credit union are owned by you; the members whereas with banks they are owned by shareholders; the investors and not the customers. Credit Unions are non-profit organizations and banks are for profit and privately owned. With this in mind, credit unions offer added value to you; the member.
- Credit Unions require low fee or no fee for opening new accounts, some as low as $5.00!
- You can obtain lower interest rates on your car loan, student loan or mortgage loans.
- You can earn higher interest rates on your CD’s (Certificate of Deposit)
- You can obtain credit cards through the credit union at lower rates.
- Credit Unions focus more on its members unlike banks which focuses more on generating profits for their shareholders.
- Most credit unions are government insured for up to $250,000 by the National Association of Federal Credit Unions (NAFCU) similar to the FDIC which is regulates the banks.
- Some credit unions even offer free seminars on money savings and investments.
Your employer may have credit unions that they are affiliated with which will be great for you and you should strongly consider. You can still hold on to your traditional bank if you chose to, if you want the option of having more ATM access availability. But remember, the benefits of joining a credit union leads to more savings and money for you!
List of some Credit Unions:
Navy Federal: https://www.navyfederal.org/
Georgia’s Own: https://www.georgiasown.org/
Delta Community: https://www.deltacommunitycu.com/Personal/home.aspx
Municipal (MCU): http://www.nymcu.org/about/index.aspx
Sources:
http://www.bankingmyway.com/save/savings/benefits-joining-credit-union
http://www.custudentloans.org/credit-union-101/benefits-of-a-credit-union/
Image Credit: getsmartaboutmoney.ca
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