Today’s consumers have a wide range of options when choosing products and services. And a smart buyer looks at their choices and weighs their options to get the best product for their specific needs.
Unfortunately, it’s obvious that many consumers don’t always do research when it comes to where they keep their hard-earned money. There are many banking options, but research tells us that over 65 percent of consumers would not change banks even if they had a negative experience or life change.
If you are currently banking with one of the “big banks” and are not satisfied with their services, there are numerous reasons to consider a bank with a credit union. If you’re not entirely convinced that they can be the right way forward for your finances, here’s a breakdown of the benefits of banking with a credit union.
Personalized customer service
Since credit unions are banks for the people by the people and have smaller memberships than the typical larger institutions, you can get a customized personal service. It’s much more of an intimate relationship than you would have with a traditional bank. The credit union employees actually know you and are invested in your success as a member. That’s because their focus is on making every consumer interaction a personal one, with no lines, long wait times, and ready-made answers.
Accessibility
Because they serve their local communities, most branches are not available outside of their service area. To make up for this, they sometimes refund ATM fees to members or offer a shared ATM network when members need to leave the network to have access to their money.
Structure
Credit unions are owned and operated by their members. As soon as you make your first deposit, you have voting rights.
Lower account fees
They also have fewer fees across the board because they have lower overheads. Since they are usually smaller operations than large banks, they can pass on their public cost savings to their members. According to Bankrate.com, more than 75% of credit unions offer free exams, compared to 40% of banks. And many don’t stop there. They even pay members rewards in the form of high interest rates or dividends, cashback, and other perks, such as ATM fee refunds.
Monthly maintenance fees are lower and members don’t have to hold such a large balance in the accounts to avoid these fees.
Serving the underserved
Credit unions serve those who are normally excluded from the traditional banking system. This includes the large number of immigrants in communities who would otherwise not have access to necessary financial services.
Supporting the local community
The money deposited with your local credit union supports its members and the local community. They channel funds back into the local economy in the form of loans to support small businesses, home purchases, and loans that help members achieve their financial goals.
Interest rate
They offer more profitable savings and checking account rates. Good luck finding an interest-bearing bank account with a megabank. They give next to nothing for their account holders.
No scams:
Employees are not pressured to achieve inappropriate sales goals. So rest assured, no one will open a secret account behind your back.
Federal insured persons
Your money is no safer with a large bank than with a local credit union. Just like the FDIC at a traditional bank, deposits up to $250,000 are insured with a credit union of NCUA — a government-backed agency.
First name basis:
They take time to get to know their members. They are a name, not just an account number.
Technologically advanced
Credit unions have come a long way from their once outdated banking style. Today, the Technology used in a credit union, just as advanced as in a megabank. They have online banking options that offer mobile check deposit, smart smart cards, mobile apps, online bill payment, e-bank statements, and more.
If you want to move your money from a traditional bank to a credit union, what’s holding you back? I would encourage anyone to research their local credit union to see what they can offer. Last but not least, it is worthwhile to open a current or savings account. You pay fewer fees and get a more personalized service.
refinancing my car
#Reasons #money #credit #union
Wendy is now a financial analyst and writer. Wendy has been writing about finance and personal finance since she was a sophomore in high school. She has also been writing for several online publications and published in The Huffington Post, and Forbes Woman.
Wendy is a credentialed financial analyst and has experience working with financial institutions and businesses. Wendy is also a certified financial planner. When Wendy's not writing, she enjoys tending to her many plants, watching TV, and spending time with her family.
- The winner of the Hottest Firefighter promises: “I’ll stay dedicated to saving lives.” - December 1, 2022
- Smiling influencer caught on camera kicking a dog apologizes for sharing the ‘cruel act.’ - December 1, 2022
- What is full coverage auto insurance in Florida? - November 14, 2022
