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As non-profit organizations that are actually owned by their members, credit unions can hold some unique benefits for investors. While there are many advantages to this type of banking, you'll find some disadvantages that may or may not be a problem. You'll need to consider both before you go ahead and open and account. Advantages This type of organization is member-owned. As an investor, you are an important part of the company. In many cases, this means that you'll experience superior service since it's imperative that your financial questions and concerns be met in order to keep you as a satisfied customer. You'll often find competitive interest rates at these organizations. In fact, you can usually find a better rate than at your local bank! As a part owner in one of the many unions across the country, you'll be able to receive a wide variety of traditional banking services. More and more organizations are offering services such as credit cards, debit cards, checking, car loans, and mortgages. So, not only are you making more off your money, you're also receiving many traditional banking services! How much is it to open an account? Typically, it can be as little as $1. For a small amount of starter money, you can take advantages of the many benefits that credit unions have to offer. Disadvantages Most of these organizations are locally owned and operated. So, if you're looking for a national company that's available in multiple locations across the United States, this may not be the right option for you. There aren't usually many ATMs available for you to use to withdraw funds. Some companies have tried to overcome the ATM problem by forming a network of ATMs that members can use free of charge. If you'd like the convenience of using an ATM, this situation would definitely be something to ask about before you open an account. While about 97% of these companies insure member deposits up to $100,000, the remaining 3% are not insured. Before you sign up to open an account, be sure to check if your money will be insured. You may find that your local bank offers a wider variety of services than local credit unions. Before you commit your money to either type of banking, you'll need to compare the two and see which option best fits your financial needs. Perhaps you'll want to have part of your money in one and part in another, especially if you have a nest egg that you'd like to use to earn higher interest.You'll need to take some time, ask some questions, and ultimately decide which option best suits your short term and long-term financial goals. When looking for credit unions in Metairie, head to New Orleans Firemen's Federal Credit Union. Learn more at https://www.noffcu.org.
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