Should you invest your hard-earned money in a bank or a credit union? Ultimately, the choice is up to you, but we’ve got a few things to let you in on before you make such an important decision. Let us help by first comparing and contrasting the basics of banks and credit unions so you can make an informed decision when it comes time to sign on the dotted line.
The Basics of a Credit Union
We’ve already answered the most common questions about credit unions, but here is a quick refresher:
- Non-profit: excess earnings are distributed to credit union members, not stockholders.
- Members are owners: any member can vote and run for the board of directors.
- Quick application process: candidates must be creditworthy, but the process to become a member is less intrusive.
- Work with you, not against you: if you’re struggling, a credit union will work harder to find an achievable solution.
- Special offers: many large companies offer promotions to affiliated credit unions.
- Personal: because of their size, credit unions are personal and locally-grown to fulfill the needs of the community.
In short, if you are concerned about the ownership of the institution with which you trust your money and place customer service above all else, taking credit unions into consideration is a good idea.
RELATED: What Is A Credit Union?
How is a Bank Different than a Credit Union?
With the exception of the aforementioned credit union basics, banks and credit unions generally offer similar products, services and fees. Banks, however, differ in these ways:
- Products: Banks have the ability to offer more variety. However, they typically offer these items at higher rates than those found at a credit union.
- Services: Customer service varies in any industry, but the ratio of bank employees to customers is a vast difference in banks where you may get put on hold several times before reaching your desired results.
- Fees: A bank’s board of directors’ main objective is to make money. If that means high interest rates and fees for everything, you can bet your investments it’ll happen.
While a credit union is only as successful as its members, a bank’s priority is how much a customer can benefit them in the long run. In other words, you’re cared for if you have the ability to drive profitable actions towards the bank. We’re not saying banks don’t care about you – they just care about you in a different way.
SEE ALSO: Why Millennials Trust Credit Unions
Join Metro North Federal Credit Union, Today!
Have you made a decision? For us there is no comparison – a credit union not only has your best interests at heart, but the rest of the community’s well-being, too! Investing in a credit union like MNFCU means putting your trust in like-minded individuals, and yourself, to take care of and grow your money.