Have you ever wondered how banks and credit unions differ from one another? Upon a cursory comparison of the services each institution offers, they seem pretty similar. They both manage checking and saving accounts. Each one also offers CDs and other specialized services. Under the surface, however, there are many benefits to being affiliated with one or several credit unions in your area. These institutions are "not for profit" and seek to generate extra revenue in order to offer great loan rates available to those who bank with them. |
First of all, just about anyone who has money to deposit can open an account at a bank. At credit unions, however, one must be affiliated with a certain workplace or organization in order to use their services. That is why you have probably heard of these types of institutions for teachers, firefighters, members of the armed services, and other reputable groups of people. Luckily, there are so many different organizations out there, it is pretty easy for anyone to find a cooperative to join for one reason or another.
A lot of people like to deposit their money with credit unions because it is almost like buying shares of stock every time you put more into your account. These places don't have to worry about advertising themselves or trying to compete with larger banks. This means that all profits go directly towards offering better rates on savings accounts and loans. Then, at the end of a fiscal year, any extra revenue beyond that is distributed among members through dividend payments.
Though all of these unique offerings sound quite appealing, there might be some drawbacks to having your money with one of these cooperatives. Since these places do not maintain the same operating budget as do larger banking institutions, they may not be able to offer their customers ATM access or mobile banking services. However, this has become pretty rare. With e-commerce becoming more populare, most institutions are finding it important to offer debit cards, online banking services, ATM access, and more.
If you like the idea of being a part of a banking system that gives back to its members, you should research some of the credit unions in your area. These places definitely strive to make banking a more personalized experience. Plus, they help members reach their financial goals with great home loan rates and other incredible investment opportunities. Take the time to learn more about what these cooperatives offer. You will probably be pretty intrigued.
Looking for your new back in Saginaw? Credit unions are the best place to start. Click here to set up an account today: https://www.wildfirecu.org.
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