Four Reasons Members Choose Credit Unions
If you’re thinking about switching financial institutions, consider a credit union. Within the past two years, more than six million people have become credit union members. Overall, more than 104 million Americans now use credit unions.
Here are four reasons.
Better interest rates
Because credit unions, like First Family Federal Credit Union, are member-owned nonprofits, they invest their earnings back into their business, rather than paying dividends to stockholders. This means that, when you open a certificate of deposit (CD), checking or savings account at a credit union, you’ll generally receive a higher rate of return than you would at a traditional bank.
Credit unions’ policies also work in your favor when you’re the one paying the interest. Whether you’re buying a house or car, looking for the right credit card, or in the market for a personal loan, a credit union will more than likely give you a lower interest rate than you’d be able to get at a large commercial bank.
Credit unions tend to charge less for their services than traditional banks do. For example, they might providefree personal and nearly free business checking.
Still, your money is just as safe in a credit union as it would be in a commercial bank. Credit union accounts are insured up to $250,000 per depositor by theNational Credit Union Administration.
When you deposit your savings into a big bank, its goal is to make money off of your money. In order to maximize returns for its shareholders, your bank might invest your deposit anywhere in the world. But credit unions operate on a local model, so their lending focuses on housing and businesses that will benefit the community where you live.
Credit unions also promote thrift and credit access for their members, especially those of modest means. That means that they’re more likely to work with members with less-than-perfect credit who want a loan.
While you can’t just walk in and join most credit unions, becoming a member is usually a fairly easy process. Some are employer- or union-sponsored, while others recruit members who live, work, or even attend church or temple in a given area.
It’s worth considering the benefits that are drawing millions of people to join credit unions. Becoming a member might help you enjoy better rates on both deposit accounts and loans, and you’ll know that your money is in an institution that’s working for your community.
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