In the financial world, choosing where to entrust your money is essential. Most people find themselves debating between credit unions and traditional banks. What if I told you that credit unions offer several advantages to benefit you and your community in the long run?
Here are some advantages of a credit union compared to a bank;
Personalized service
Say goodbye to generic customer service. Credit unions pride themselves on getting to know their members and providing tailored banking solutions. Because credit unions are typically smaller than most banks, you’ll notice a more intimate atmosphere where their staff will go the extra mile to address your needs and concerns.
Lower fees
Are you tired of all those little fees nibbling away at your balance? Empower FCU tend to have lower fees compared to banks. They generally offer free or low-cost checking accounts and lower fees for services like ATM withdrawals. This means more money stays in your pocket, and who doesn’t love that?
Share dividends
As a member of a credit union, you are a part-owner, which means that you get a say in how the credit union operates. This ownership comes with perks, such as a piece of the pie when dividends are shared. Dividends are profits distributed to the members, giving you an extra incentive for choosing a credit union over a traditional bank.
Member ownership
When you open an account at a credit union, you become a member and partial owner. As a member-owner, you have voting rights on credit union matters, such as electing board members. This gives you a voice in the credit union’s operations and a say in managing it. In contrast, banks are owned by external shareholders who often prioritize profits over the needs and concerns of account holders.
Accessibility
Credit unions often provide services to those who may be underserved or overlooked by traditional banks. They are more likely to work with individuals with lower credit scores or limited financial histories, offering the chance to build healthier financial habits. Credit unions are also known for providing personalized support, helping members better understand the options and services available to them.
Customer-centric approach
Credit unions prioritize their members’ interests and needs. As a member of a credit union, you are more than just a customer you are a co-owner. This ensures that the institution focuses on serving its members rather than maximizing profit. You can expect personalized services and a more genuine approach to addressing your financial needs.
Community focus
Local communities are the heart and soul of credit unions. They often contribute to their communities through philanthropy, sponsorships, and financial education initiatives. By supporting local businesses, events, and organizations, credit unions foster economic growth and strengthen community ties.
Wrapping up
When comparing banks and credit unions, the latter’s not-for-profit status, member ownership, better interest rates, and lower fees set them apart as a more member-centric alternative to traditional banking. Credit unions are dedicated to providing their members with valuable financial services and products while actively fostering a sense of community.
