Many banks are tightening lending standards and raising interest rates, which makes credit unions a great alternative. 90 million Americans currently belong to this type of financial institution because of the many benefits they provide as opposed to banks. Credit unions are often mischaracterized as exclusive places that only provide a limited range of services. However, this is not the case. Most Americans are eligible to join them and they offer a wide array of services, including but not limited to free ATM usage, online and mobile banking, home and auto loans, checking accounts, debit cards, and interest-bearing savings accounts. One of the main benefits that these financial institutions provide is better interest rates than the ones provided by banks. You will generally get lower interest rates on loans and higher interest rates on savings accounts. The average bank rate on a four-year loan for a new car is 6.92 percent, as oppose to a 5.43 percent average at credit unions. The average interest rate for a five-year CD of ten thousand dollars is 3.94 percent, compared to a 3.54 percent return at a bank. Additionally, you will be able to find limits on interest rates and loans, which is not something you can find at a bank. In addition to lower interest rates, you will have fewer fees, especially for ATM usage. Many banks charge exorbitant fees for people who use other ATMs in addition to any fees charged by the ATM company itself. This is generally not the case at credit unions. These institutions pride themselves on their lack of fees, and generally do not charge additional fees on top of the fees charged by the ATM itself. This can save you money each time you make a withdrawal. You will also generally be able to keep an account open without maintaining a minimum balance. Banks often require that you keep a certain amount of money in your checking or savings accounts and charge you a fee if your account happens to dip below that balance. This is not the case at credit unions. These institutions have also been less affected by the current financial crisis than banks. This is probably the case because they are owned and managed by customers as opposed to stockholders and corporate executives as is the case at large banks. This means that a strong sense of community responsibility exists and members are likely more motivated to repay their loans on time, since not doing so will adversely affect other members. These institutions also help the community. As discussed above, they are owned by members, not by shareholders that probably do not even live in the same community as you. This means that any dividends are paid directly to the members and do not go to shareholders as is the case with a typical corporation or company. Are you looking for Saginaw credit unions? Find your banking solution and store your money athttps://www.wildfirecu.org.
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