Credit Unions vs. Banks?
Answer:
As a lifelong CU member and off-and-on bank customer, I have found the service at the CUs to be better. You also have the availability to utilize CU service centers across the nation to take care of basic banking needs (deposits, withdrawals, transfers). The only way to conduct business from a bank is at a branch or ATM from that very bank (or pay a premium to use another banks ATM).
One of the advantages of being a CU member is that the CU is member-owned. Which is why most CUs call their accounts 'Share Accounts.' Being member-owned also means that the board of directors is not paid and is a panel of other CU members, like yourself. Their interests are in making the CU run smoothly and not about making money for themselves.
Because of my credit score, I had to go before a review board to get a loan from my CU. It happened to consist of three members of the board of directors and two other members. It was nice to see that these people were dressed like me and some were still wearing their badges from where they work.
I used to be a customer of Bank of America, but their service was not good, and I was met with a cold feeling any time I really needed help.
Credit unions, being much smaller, generally give much better service. Depending on where you live, there might be differences in how much you would be covered by insurance if the credit union goes bankrupt. Other than that, credit unions generally are far superior to banks.
I actually have a bank account, and a credit union account.
The bank because it's national, and no matter where I go, there's a branch (helpful if you have family out of state).
The credit union for my loans because they offer much better rates.
Credit unions. I've worked at both credit unions and banks, and had accounts at both, and credit unions are definitely a better option. Because credit unions are non-for-profit institutions they are more concerned with their customer (members). Loan rates are usually lower then banks, interest on your savings account is higher than banks. You still get all the same account options (checking, savings, etc) but in a much friendlier environment.
When it comes to where to do your banking, personal service and great rates should help you decide. Looking to a credit union is a great choice. Since credit unions are not-for-profit, that means they have their members (accountholders) in mind, not some profit seeking stockholders like a bank has. Credit unions are vying for your business and will help you reach your goals. They may not have as many "brick and mortar" offices, but you can use lots of ATMs at no cost and many have shared branching with other credit unions. Hey, the best thing to do is online banking, so you don't even have to bother with branches. To find a credit union near you, check out this link: http://www.creditunion.coop/cu_locator/i.
Happy "banking" at your new credit union!
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