What are the benefits of Credit Union banking?
Banking Credit Union Banking often offers several advantages over banking with a traditional financial institution. Cooperative credit unions operate on a non -profit basis, allowing them to provide reduced financial services to members. These benefits often include free control, lower interest rates, minimum overdraft fees, reduced ATM fees and better credit card options. Loans are also owned by members, which often leads to better customer service. In the US, Credit Union bank accounts are insured by the federal government.
Traditional financial institutions usually work to increase the lower line. One of the advantages of Credit Union banking is that profits are used to provide affordable financial services to members, and any remaining profit is transmitted to dividends. As a result, more than 70% of credit unions give members free check accounts connected to without chains. Cooperative credit unions also use profits to provide lo membersThere were interest rates before they are usually offered by traditional banks. For qualified members, the interest rates on the mortgage, automobile loan or personal loan can be a few percentage points less than in the traditional bank.
Since credit unions do not earn from members, Credit Union banking often offers reduced fees compared to traditional banking. Statistics show that fees for pumping in the US on credit union can be up to $ 15 less than in the bank. Nor does many credit unions charge members for the use of an ATM outside the network of a credit union; Many of them have measures with banks outside the network to allow members to use ATMs on the basis of free of charge. For traditional banks, customers are often charged twice for the use of a machine that this bank does not own.
Banking Credit Union Banking also often provides members of credit card offers. Many companionStev's credit unions offer qualified members of Crekarty or lines of loans with small to any annual fees and better interest rates than traditional banks. In many cases, credit unions are also more indulgent with late payments, and many people have found that the credit union is more willing to cooperate with members in a difficult time than the bank.
Each member of the Cooperative Backup of own part of the credit union. This tends to have the result that members are perceived as partners more than a cooperative than customers or a means of making money. The evaluation of customer services for credit unlike traditional banks are often significantly higher; Cooperative credit unions are usually local, with only a handful of branches, which allows those who work at a branch, get acquainted with members and provide them with personalized service.
In the US, traditional banks are supported by the federal company insurance company (FDIC), providing each insurance deposit of $ 250,000 in their account.Credit Union banking also provided assurance. The National Credit Union Administration (NCUA) provides the same amount of insurance, which is also supported by the Federal Government. This gives the members the certainty that if a credit union closed, a large part of their money is protected.