|
Unless you keep your money in a safe or under your mattress, you are probably familiar with the concept of a checking account. If you are like most people, you probably use a bank to store your money. Although banks offer a great way to keep you money safe, borrow money, and use services like debit cards and ATMs to easily access your money, you may not realize that credit unions offer many of the same services. Some people prefer using these community-based financial institutions for a variety of reasons. Credit unions and banks offer many of the same financial services. They both offer checking accounts that allow people to deposit and withdraw their money whenever they want. Both institutions offer checks and debit cards that work as well as cash as most places and ATMs that allow people to easily withdraw their money from countless locations in their area. They both offer savings accounts, have local branches, and they both offer loans, CDs, and other financial products and services. On the surface, these two types of institutions may seem nearly identical. However, they are actually quite different from one another. The main difference between these two entities is that banks are businesses, and credit unions are not. Banks, like most businesses, have the main goal of making as much profit as possible. When choosing to do business with a bank, you are essentially giving your money to the bank as a loan. They then use your money, along with other customers' funds to loan out to other people. Banks must pay for advertising, lobbying and more to stay competitive. Credit unions offer the same services, but structurally they operate completely differently. These institutions are not businesses, so they are not inherently concerned about profit. Rather than being a customer, you are part owner, so when you deposit your money, you are technically buying shares of the company. You won't have to worry about any of the money in the entity going towards corporate interests, lobbying, or CEOs behind the scenes controlling the fate of your money. Choosing between these two institutions is simply a matter of preference. While credit unions often do not provide the immediate convenience that larger banks offer, people throughout the world are growing more disillusion by the troubled corporate banking system. If there are any in your area, simply schedule an appointment to speak with someone. You might find that you will feel much more comfortable supporting a local not for profit organization. When looking for credit unions, Saginaw, MI, residents can turn to Wildfire Credit Union. Learn more at https://www.wildfirecu.org.
Related Articles -
credit, unions, saginaw, mi,
|
