Top 4 Benefits of a Credit Union

It’s your money. You should have the convenience of robust financial products while having quality customer service. At a credit union, you get that, plus their focus on you and your community. Here are the top four reasons to switch to a credit union.


Let’s face it. When you’re the owner of a business, you get treated differently. That’s the same at a credit union. A credit union’s membership is equivalent to that person buying into the financial cooperative. This differs greatly from a bank. At a bank, the owners are the shareholders, and since banks are for-profit institutions, they are more likely to focus on profits for them than their customers.

Credit unions are not-for-profits, so every dime they earn gets reinvested. This often leads to better rates, lower fees, free education… anything to make the owners, aka the members, lives better.

Insured Deposits

While banks are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) per account, credit unions have the same perk but through the National Credit Union Administration (NCUA). The NCUA is the independent insurance agency that administers the National Credit Union Share Insurance Fund (NCUSIF), which is how they are able to insure accounts up to $250,000.

This means the same security you have with a bank you have with a credit union. Check out more information about how a credit union is insured here.

Better Rates & Lower Fees

Since all credit union profits are reinvested into the institution, that often means the rates are lower and they charge smaller fees. Without profit-driven shareholders, credit unions are able to focus on their members and give back to them as much as possible. This can result in more services, lower interest on loans, higher dividends on deposits, and fewer and less costly fees. All this adds up and gives you the upper hand in your financial future.

Comprehensive Services

Since credit unions have a focus on their members, they are ready to go beyond the transaction. Some credit unions offer free education so members can get the most out of their money or extend their specialized services by providing financial advisors or offer health insurance. When a credit union offers free education classes and unique services, you know they are in your corner and ready to help with your first home, buying a vehicle, saving for retirement, and more. At a credit union, they make sure you get the most out of your money.

On top of all these benefits, credit unions are committed to serving their local communities. Giving back and making charitable donations is one of best way it serves its members. To reap all these benefits, consider opening an account today.