Trying to decide where you should keep your money? Or maybe you’re keeping your money at a big bank and are ready to stop paying more for less. This guide will tell you five reasons why you should ditch your bank become a Member-Owner of a Credit Union today!
1. Credit Unions Have an Emphasis on Customer Service
A credit union is a cooperative, meaning that it is owned and operated by its members, and is not owned by its stockholders like a bank. This means that credit unions typically have better customer service support because they’re made by members, for members.
2. Credit Unions Have Better Motives
Because credit unions are nonprofits, their motives are different than big banks. Rather than prioritizing profits over people, Credit Unions are looking to put their profits back into the institution, not into the pockets of wealthy shareholders.
3. Better Loan Rates
Like we hinted at in the last reason, Credit Unions are known to have better and lower loan rates compared to big banks because our profits go right back to our members in the form of great deals. Expect lower interest rates and bigger returns with a Credit Union. Don’t believe us?Take a look at our interest rates and see for yourself!
4. Insurance
Your money is safer in a Credit Unions hands because all accounts are federally insured up to $250,000 and backed by the U.S. government.
5. Earnings on Savings Accounts
Statistically, personal savings accounts from Credit Unions fare better than accounts in major banks. Grow your money faster with a Value+ Money Market account, or a share certificate.
Ready to make the switch and start owning your future? Learn more about the products, services, and financial education that the USC Credit Union offers!
FAQs
What Are the Major Advantages of Credit Unions? Credit unions typically offer lower closing costs for home mortgage loans, and lower rates for lending, particularly with credit card and auto loan interest rates. They also have generally lower fees and higher savings rates for CDs and money market accounts.
What's the main advantage of keeping money in a bank or credit union? ›
Saving at a bank provides better security protection than keeping money at home. Banks have strict security systems, such as protection against theft and loss of money.
What is one reason that a credit union is better than a bank? ›
Why Choose a Credit Union? Lower interest rates on loans and credit cards; higher rates of return on CDs and savings accounts. Since credit unions are non-profits and have lower overhead costs than banks, we are able to pass on cost savings to consumers through competitively priced loan and deposit products.
What is the biggest benefit of using a credit union? ›
The main benefits of a credit union vs. a bank are that credit unions tend to offer better rates and customer service, lower fees, and a national network of ATMs. However, a bank may offer more branches and products than a credit union.
What are the benefits of a credit union? ›
Higher returns, better savings, low interest on borrowings, and a sense of community – these are just a few of the benefits of credit union membership.
Why should you switch to a credit union? ›
According to a study by Informa Research Services, credit unions have lower average rates on credit cards, auto loans, personal loans, and home equity lines of credit. In addition, credit unions have higher average return rates on personal savings, checking, money market, and 1-year certificate accounts.
What is safer to keep your money in a bank or credit union? ›
However, because credit unions serve mostly individuals and small businesses (rather than large investors) and are known to take fewer risks, credit unions are generally viewed as safer than banks in the event of a collapse. Regardless, both types of financial institutions are equally protected.
What are the pros and cons of a credit union? ›
The Pros And Cons Of Credit Unions
- Better interest rates on loans. Credit unions typically offer higher saving rates and lower loan rates compared to traditional banks. ...
- High-level customer service. ...
- Lower fees. ...
- A variety of services. ...
- Cross-collateralization. ...
- Fewer branches, ATMs and services. ...
- The biggest negative.
Just like banks, credit unions are federally insured; however, credit unions are not insured by the Federal Deposit Insurance Corporation (FDIC). Instead, the National Credit Union Administration (NCUA) is the federal insurer of credit unions, making them just as safe as traditional banks.
Why do banks not like credit unions? ›
First, bankers believe it is unfair that credit unions are exempt from federal taxation while the taxes that banks pay represent a significant fraction of their earnings—33 percent last year. Second, bankers believe that credit unions have been allowed to expand far beyond their original purpose.
Largest Credit Unions in the U.S.
| Rank by Asset Size | Credit Union Name | Total Assets |
|---|
| 1. | Navy Federal Credit Union | $168.4 billion |
| 2. | State Employees' Credit Union | $50.68 billion |
| 3. | Pentagon Federal Credit Union | $35.36 billion |
| 4. | Boeing Employees' Credit Union | $29.17 billion |
6 more rowsApr 25, 2024
Credit unions are backed by the National Credit Union Share Insurance Fund (NCUSIF), which is equivalent to the Federal Deposit Insurance Corporation (FDIC) for banks. This safety net guarantees your funds, typically up to $250,000 per depositor, should any unexpected turbulence occur.
Should I keep my savings in a credit union? ›
These days, credit unions are safe and secure, having been insured by the government for over 50 years. Credit unions are a popular place for savings accounts because they often offer more favorable interest rates on both loans and savings accounts.
Is it safer to put your money in a credit union than a bank? ›
However, because credit unions serve mostly individuals and small businesses (rather than large investors) and are known to take fewer risks, credit unions are generally viewed as safer than banks in the event of a collapse. Regardless, both types of financial institutions are equally protected.
Should I worry about my money in a credit union? ›
Money held in credit union accounts is insured through the National Credit Union Administration (NCUA). Many types of accounts are covered by insurance such as checking, savings, certificates of deposit, money market accounts, and others.
What are the disadvantages of saving in a credit union? ›
ATMs and Branches Might Not Be Convenient
If you're considering a credit union that's on the smaller side, it might have a limited number of locations in your community. Finding time to visit the branch can be difficult, especially since some credit unions don't have the most flexible hours.
