Credit Unions- Something Smarter
You have heard that Credit Unions are the way to go, but you already have a checking account at a bank. How is a bank different from a credit union? Should you move your checking account to a credit union? And then there is all the negative news lately about what banks are doing to consumers. It’s all very disheartening. Should you be concerned?
The short answer is YES! You’re not alone. Many Americans are worried about where they choose to put their money and who they bank with. They are looking for something smarter, like a credit union.
As a credit union member, you can expect a more rewarding experience. Because credit unions are member-owned and not-for-profit, they are more attuned to the needs of their members.
While banks and credit unions offer nearly identical services and account choices, there are some huge differences.
Account fees
To the unsuspecting consumer, big banks may not feel like money-hungry monsters. But while they’re happy to hold onto your money, once your account is up and running, expect to get hit with steep maintenance fees. The average bank charges consumers close to $150 yearly for an open checking account.
On the flip side, many credit unions offer free checking or make it easy to avoid fees, so you can set up your account and keep it running without it costing a dime.
Overdraft fees
Sometimes, you miscalculate the funds in your account and overspend. If you make this mistake on a bank checking account, get ready to cough up those overdraft fees!
These fees usually top $30, and some banks will make consumers pay the penalty for each transaction they make while their account is overdrawn.
Most credit unions will be more willing to forgive the occasional error. While some credit unions charge an overdraft fee, on average, these fees are much lower than what banks demand.
Fewer strings attached
Most big banks won’t allow you to open a checking account unless you have a minimum balance of several hundred dollars. In contrast, 76% of credit unions have no minimum balance requirement.
Credit unions are government-regulated
Both credit unions and banks are federally governed. Like a bank with federal insurance, a credit union that’s federally insured covers your accounts up to $250,000.
However, credit unions face more government restrictions on their investments and loans than banks do. This means your credit union has to be super-careful with how it invests your money.
Personal superior service
There are huge perks to being a part of a credit union versus a huge bank, and one is personal service. Many credit unions are a part of your community. They treat you like an individual and not just a number. That can make a huge difference when borrowing money. They also care about your financial well-being. After all, your success is their success!
When you stop by your credit union, you’ll be greeted with friendly, familiar faces and representatives who actually care. They’re always ready and willing to help you because they always have your best interests in mind.
Why choose a credit union for your checking account? With lower fees, fewer strings attached, and better service, it’s the best place to park your money! Make the switch to Elevate Credit Union.
