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Why You Should Opt for Credit Unions
Banks don’t like credit unions for a good reason. Banks are set on making money for their owners and investors. Bank customers are generally seen as sources of income. On the other hand, credit unions are by non-profit entities, built together to pool resources and give members benefits. In summary, if you are going with a commercial bank, you’re their source of income. If you work with credit unions, you are amongst friends.
A credit union is a collective of people with a shared interest. Maybe they’re employees of some company or just people who live in a specific area. There are financial organizations that have grown pretty well with over 72 million members; this is for the United States alone, so finding a union for you to join is not at the very least an issue.
A credit union is an entity that’s managed and owned by the very people who opt for its service. A group of individuals has gathered to share money. If you are a part of these organizations then you are a member, and being a member means you have a say on how to run the union. Because of the fact that these organizations are run by their members, there is a great incentive for these kinds of organizations to provide high savings returns, good customer service, and low rates for loans. The non-profit nature of these businesses means that they are not set on making money off of the loans and or accounts which leads to good rates. This is the reason why banks are not quite fond of these organizations.
Credit unions provide the exact same basic services offered by traditional banks. Although they might not have a wide range of investments as well as the obscure investment and savings options, they have savings and checking options. However, unlike traditional banks, these non-profit organizations don’t label their services as “savings” and “checking”
Credit unions call a checking account a “share draft account” while a savings account is called a “share account”. Taking into consideration that these organizations are basically just a group of individuals sharing money with each other at perfectly reasonable rates, the names make sense.
With a share draft account, you won’t receive your checks back though. This is just one of the things that are part of the system. It’s not that big of a problem seeing that it can very much easily be solved by simply keeping track of your transactions.
Credit unions offer basic accounts, loans, and savings instruments of banks but with great rates. Before you join the nearest organization, though, make sure to check to see whether all of your needs are covered. As these are growing organizations, they are constantly improving to better serve their members by adding new services. So always keep a lookout on new offers provided by your credit union so you’re to make sure your money is working for you in the best way possible.