When it comes to banking, you have two options. A credit union or a bank. But what are the differences? And which is better for your savings account or loan needs? Credit unions are not-for-profit financial institutions that exist solely to serve members with low fees and rates, but they also offer many services that banks don’t.
For example, most credit unions offer free checking accounts with no monthly maintenance fee as well as affordable loans, mortgages, and even car loans. This article will outline reasons why people are turning away from traditional banks in favor of credit unions like Empower Federal Credit Union office in Syracuse, as their primary bank account provider.
Work For The Interest Of Members
The way in which banks make profits and serve both stockholders and customers is based on their for-profit nature. Alternatively, credit unions serve members-owners as not-for-profit financial institutions. That’s right. You become a member and owner of the credit union when you deposit money into a savings account. While banks strive to earn profits for outside shareholders, credit unions return profits back to their members at more competitive rates.
As non-profit, member-owned financial institutions, credit unions provide excellent rates on auto loans and mortgages with no hidden fees or traps. The main difference between credit unions and most banks is that they are managed by directors who are also union members. And unlike salaried executives at other institutions, these directors have the interests of their members at heart.
Offer Favorable Lending Rates
A common question that people interested in becoming members ask is, “What gives credit unions an edge over traditional banks?” The quick answer is credit unions are not-for-profit financial unions that improve the quality of life for their members by providing affordable credit. This means they offer low interests at more competitive terms, with no hidden charges or fees.
Savings accounts and other financial products are more likely to be offered with the best rates possible. This is because they are there to serve members instead of investors who demand higher returns. The increased interest rates might not seem like much, but over time it will add up and help your savings to grow faster than if it was in a traditional bank account.
Credit Union Strives To Be An Information Resource For Consumers
In a world where corporations have been known to take advantage of their customers, for instance, big banks make money by charging unsuspecting consumers for services they don’t even know exist, credit unions are the exception, they strive to educate their members on how they can make better financial decisions and improve their quality of life. They believe that everyone should be empowered with knowledge about what’s going on in their finances and credit union membership is the best way to do it.
How Credit Unions Make Banking Easy
Credit unions offer a unique service in the world of finance. Unlike most banks, they exist to serve members’ needs. This means that when you call a credit union for help with your account balance or an auto loan, you can expect real people on the other end of the line who will provide information without having to wait hours on hold.
Credit Union Offers Online Banking For All
Credit Unions are offering their members the opportunity to bank on their own time, without having to visit a branch. Credit union members now have more access to their accounts than ever before thanks to widespread internet accessibility. Several everyday services, such as online bill payment and direct deposit, are available online. PayPal, Square, and other e-commerce providers are convenient ways of sending or receiving money online through online banking.
If you are looking for a financial institution that will work to serve your needs and not the interests of outside investors, then credit unions may be just what you need. With competitive rates on loans and mortgages, no hidden fees or traps, and favorable interest rates for savings accounts, credit unions are the way to go. Credit unions also have excellent customer service representatives, as they offer easy access to banking services through their online platforms. The bottom line is this: Credit Unions exist solely to improve the quality of life for their members by providing them with low-cost financing options.