While there are a variety of banks to choose from to stash your money, this may not be the best option for you.
Keep reading below to learn why credit unions may be best place to bank.
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What Is A Credit Union
Credit unions are non profit financial institutions. They generally offer financial products like checking/savings accounts, investment accounts, loans, and credit cards.
Unlike banks credit unions are owned by their members. This means their members are cooperatives, take note that banks are open to everyone, however membership eligibility for a credit union is dependent on one of a few factors. This is called the field of membership.
Checkout these fantastic checking accounts you can receive at a variety of credit unions.
Why Should You Join A Credit Union
While many people tend to stay with the same bank they have been with since the beginning, there are variety of reasons to join a credit union.
1. Credit Unions Are Committed To Their Community
Instead of passing off profits to executive leadership like many banks do, credit unions usually invest extra funds into related 501(c)3 charities or back into the credit union itself.
This helps improve the credit unions technology, accessibility, or other factors, they can give members a better banking experience.
2. Credit Unions Offer Just As Many Financial Products
Credit unions have a vast array of financial products for all their clients. Here’s what you can expect at the majority of credit unions:
- Checking accounts
- Savings accounts
- IRAs
- Money market accounts
- Share certificates
- Loans (auto, real estate, student, personal)
- Credit cards, and more
3. Credit Unions Have Better Interest Rates
The biggest draw besides the community engagement would be that credit unions are known for having some of the best interest rates on the market.
4. Credit Unions Have All The Same Features As Banks
In terms of features credit unions typically offer the same features, and with better customer service.
Most Credit Unions offer:
- Mobile banking apps
- Foreign currency exchange and purchase
- Financial education workshops
- Custom financial counseling
- Coin redemption machines
- Notary public services
- Identity theft protection
- Tax preparation services
- Local discounts
5. Credit Unions Have The Same Financial Protections As Banks
While credit unions are not subject to FDIC protections. However they have their own government agency that supervises, regulates, and insures all federally charted credit unions: The National Credit Union Administration (NCUA).
The NCUA insures your funds up to $250,000.
How To Join A Credit Union
Joining a credit union can be incredibly easy all you have to do is:
1. Check Eligibility Requirements
One of the major eligibility requirements is meeting the field of membership. Generally the field of membership is where you live, where you work, and what groups you’re a part of.
2. Bring Cash, Check, Or Debit Card To Make Your First Deposit
Opening an account with a credit union will have a small opening deposit ranging form $5-$25.
3. Fill Out An Application
You can fill out a brief application online or at a branch. The application will most likely ask for your:
- Name
- Date of birth
- Physical address
- Contact info
- State-issued ID
- Employment info.
Conclusion
Credit unions have a reputation for high-quality customer service and fantastic banking products so sign up with one if this interests you!
Additionally, If you are interested be sure to check out our list of bank bonuses, saving rates and CD rates!
