Credit unions have many advantages that traditional banks do not. In this brief article, I will provide some key advantages of a credit union that many may not be aware of. There are many pros to having a credit union and the purpose of this article is to make a few of these pros known to those seeking a few hidden gems for banking needs.
With having an account with a traditional bank there are many fees associated with overdrafts and there are also High-interest rates with utilizing a cash back feature on a credit card. Let’s not forget the annual fee that is attached to a credit card issued by a traditional bank as well. With a credit union, this is not so. Credit Unions do not have annual fees and there are no overdraft fees as well. When consumers are shopping for a home loan or an automobile loan, the first choice is usually a traditional bank until more information is discovered about the benefits of utilizing a credit union. With a little bit of knowledge and information, the many advantages of credit unions are made known to those who seek an alternative to traditional banks.
Many people do not have the proper perspective about the credit union. Some believe that credit unions are only for veterans or those who are considered elderly. On the contrary, anyone with the desire to open a checking account or savings account can walk into a Local Credit Union and receive service. Monthly maintenance fees are charged to holders of accounts with a traditional bank. Credit unions do not have monthly maintenance fees. The primary reason this is so is that credit unions are held by the members of the credit union. In other words, each member is a shareholder of the credit union. This allows all of the profits that the credit union to flow to each member in the form of low-interest rates and better fees for mortgages and other forms of financing that the account holder may seek. On the other hand, traditional banks are a for-profit organization. This means that the bank survives off the fees and interest rates that are placed on each account holder.
ATM fees are very high for those with traditional bank debit cards. When a consumer decides to make a withdrawal and does not use the bank’s ATM there is a fee attached to such a transaction. With a credit union, there are many ATMs available outside of the credit union where there are no fees attached to a transaction. Online service is available with credit unions and the ability to deposit checks with a smartphone device is also available. Customers reach out via the online portal to learn more and more about their account with their credit union. Although this is not a conclusive article about the advantages of a credit union this is simply to inform of a few key aspects that make credit unions more attractive than traditional banks today.