Credits unions are often a hazy concept to people who have either never heard of them, or to people who buy into the idea that credit unions aren’t real banks. When it comes down to it, the major banking institutions want people to believe that credit unions aren’t real banks – or else people would start flocking to credit unions. However, the truth is that credit unions can often be a welcome alternative to the big banking experience and some credit unions, like 1st Financial Federal Credit Union, can offer benefits and advantages that the big banks just can’t offer. Here are five major benefits of joining a credit union.
You matter. When you start an account with a credit union, you essentially become a member. While big banks have multiple stock holders and executives, a credit union only has the people banking with their institution. This means that when you walk into a credit union, you get treated with the utmost respect and the money you have invested in your accounts is respected too – often with no hidden fees. Most big banks are riddled with hidden fees.
Lower interest rates on loans. When it comes down to it, if you are a small business looking to expand, or if you are a local entrepreneur looking to open a business, a credit union will offer much more agreeable loans. Not only that, but while a big bank may attach a massive interest to a loan, a credit union won’t often go above 2%. So, if you are an entrepreneur, or if you are thinking of expanding your business, you may want to head to a credit union to see about getting approved for a loan, because a big bank may give you a bad deal.
Valuable community investments. Big banks often make extremely risky wagers, which can have a massive impact on the entire economy. Oftentimes, it is the little guys that get hurt when a big banker makes a risky investment. However, a credit union is more vested in how a community prospers, so a credit union is more likely to make investments in projects that will be good for the local economy – investments that could open up more jobs.
Credit unions are non-profit. The non-profit designation of credit unions is amazing, because it means that the people banking with the union will reap the rewards. Also, it means that you will not be taken advantage of and less wagers will be made on your finances. Bigger banks often gamble with people’s nest eggs, but a credit union will only do what is in your best interest.
Better customer service. When it comes down to it, you are more likely to get greeted with a genuine smile in a credit union than you are in a big bank. Credit unions are smaller, which means less bureaucracy – far less. If you want to know that your money is safe and that you can have any questions answered honestly, a credit union is your best bet, especially if you are looking for a place to put your life savings.