Are you ready to open your financial account and are you wondering whether to make open an account with a Bank or a Credit Union? Or you’re tired of using Banks and you’re wondering whether Credit Union is right for you. Read through this review as we discuss why Credit Union is Right for you and everything you need to know about Credit Union. Although, Banks and Credit Unions are often shared similarities and they offer equal safety for your money using federal government-backed insurance. But they are owned and managed by different members.
What is a Credit Union?
Credit Union is a nonprofit, cooperative, and member-owned financial institution unlike banks which are owned by Shareholders. Based on our research, more than a million Americans are members of Credit Unions. The aim of Credit Unions is to provide their customers with lower fees and strong interest rates compare to banks their main goal is to make a profit.
However, they offer almost all the same types of financial products and services as banks. But the names of their account are slightly different. Take, for instance, a checking account is known as a share draft account and instead of paying interest, they pay dividends to their members. Overall, Credit Union is a safe place to save and get loans at a reasonable rate.
Why Credit Union is Right for You?
There are so many reasons why you should consider using Credit Unions and in this section of the article, we shall be discussing on some of the reasons why you should make use of Credit Unions. Here are some of the reasons;
1. Low Rate on Loans and Saving Accounts
One of the reasons why a Credit Union is right for you is due to its Low rate on Loans and Savings accounts. This means you can get loans and open a Savings account at a low rate. You can get reasonable rates on loans once you sign up for a Credit Union Account.
2. Wide Range of Service and products
Credit Union offers a wide range of services and products including; Mortgage Loans, Car Loans, Member Business Loans, Credit Cards, Overdraft protection, and a lot more. However, it is worth noting that; not all credit unions offer as many products and services as others. But generally, Credit Union tends to cover a lot of banking products and services to meet your needs.
3. High Interest Rates on Savings
As mentioned, Banks deals in profit while Credit union offers low rate and higher interest rates. When you get products such as CDs and Savings accounts, you tend to pay interest rates.
4. Insured Deposits
Another reason why Credit Union is right for you is that you can get insured deposits of up to $250,000. If you didn’t know, NCUSIF is backed by the U.S government and covers individual deposits. But note that, privately insured credit unions aren’t backed by the U.S government.
5. Amazing Customer Service
Aside from the fact that Credit Union offers amazing services, they also offer great and super amazing customer service. Based on research, they offer one of the best customer services as customers are always satisfied with their service. They are highly focused on providing customer service that banks may not offer.
How to Join a Credit Union
On the contrary, there are limits to who can qualify for a Membership account with Credit Union. In most cases, you must be part of the military community before you can join a Credit Union. Such as active duty military, veterans, employees or contractors, or their family members. Well, other credit Unions memberships are limited to a particular employer, universities, Labor unions, and more.
Meanwhile, before applying for a Credit Union, you must check if their services can be accessed online and if they have a nationwide membership base. As you know, with an online account, you can get access to your account anywhere and anytime. Also, it is important to make use of the national credit union as this will enable you to access their loans, CDs and savings account regardless of your work, home, and more. Note that; you might be required to pay a fee of $5 to $25 before you can join a Credit Union.