The Advantages of Banking with a Credit Union
There are several advantages to banking with a credit union over a traditional bank. Credit unions are member-owned cooperatives, which means they are not in it for profit. Any profits made are reinvested back into the credit union or given back to the members in the form of lower fees, higher interest rates, and other benefits. Here are just a few of the reasons you should consider banking with a credit union.
1. Lower Fees
Since credit unions are non-profit organizations, they don’t have to charge high fees like traditional banks do. This can include everything from monthly maintenance fees to overdraft protection fees. According to Forbes, the average American pays $329 per year in bank fees, but credit union members only pay an average of $28 per year. That’s a savings of over $300!
2. Higher Interest Rates
Credit unions also tend to offer higher interest rates on savings accounts and loans than traditional banks. They can afford to do this because they don’t have shareholders to answer to and don’t need to make a profit. This means more money in your pocket!
3. Better Customer Service
Credit unions pride themselves on providing great customer service. Because they are member-owned, they truly care about their members and want to help them reach their financial goals. Credit unions also tend to be smaller than banks, so you can get to know your tellers and branch managers on a first-name basis. They will get to know you and your financial needs and can offer customized solutions to meet your needs.
As you can see, there are several advantages to banking with a credit union over a traditional bank. If you’re looking for lower fees, higher interest rates, and great customer service, then a credit union is the right choice for you!