Many people keep their accounts with a large bank out of habit and never consider switching to a local credit union. This is unfortunate because credit unions offer great perks and advantages over a traditional bank. Here are five great reasons to consider switching to a credit union:
Unlike banks, which focus on making profits, credit unions are nonprofit organizations. Credit unions tend to see their customers as members or stakeholders rather than customers who help them to earn a profit. This often translates to better customer service, more individualized attention, and an atmosphere of cooperation where members are asked for input.
Not as Many Fees
Joining a credit union can save you money because credit unions tend to have fewer and more reasonable fees than banks. Most credit unions boast no ATM or transfer fees and lower overdraft fees than banks. If you find that your bank is nickle and diming you when it comes to endless fees, switching to a credit union can be a huge relief.
Better Interest on Savings
While the current economy has led to generally low interest rates on savings accounts and CDs across the board, credit union savings accounts do tend to offer more interest than banks. Since credit unions aren't focused on making huge profits they can afford to be more generous when offering interest to their members. If you currently keep money in a savings account, you may as well be earning better interest on it.
Lower Interest on Loans
For similar reasons, credit union members often get quoted lower interest on loans than if they take a loan out from the bank instead. In addition, requirements for getting approved for a car or personal loan at a credit union can be a bit less stringent than at the bank. Since credit unions take a more personal approach to their members, they are often willing to work with you individually to find a loan product you will get approved for that doesn't come with an unreasonably high amount of interest.
Since credit unions tend to be community-based, they often offer fun perks that help benefit the community and their members. These can include free classes on personal finance and debt management, local events like potlucks or barbecues for their members, and even bonus checks that go out periodically to members.
By making the switch from bank to credit union, such as New Horizons Credit Union, you can experience these benefits for yourself.