Matters concerning our finances will always be part of our lives as long as we live on this planet. One of the most significant decisions that we will ever make when it comes to our finances is choosing an institution to entrust our hard-earned money. Of course, banks will always be part of the conversation given the fact that such institutions have been existent since the 1400S or even earlier than that date.
However, credit unions had become the number one choice of many people because these institutions offer different benefits. Credit unions operate like a bank but doing business with such financial firms is more advantageous. Read on to find out the advantages of choosing credit unions over banks.
You will be surprised to find out that the money you saved in a bank did not grow any interest. If it did, it is unnoticeable. You sometimes contemplate on putting your money in a piggy bank instead since it does not grow any interest in the bank. Alternately, banks offer loans with high interest rates. Credit unions work the other way around. They offer low interest rates on loans while deposit accounts have high interest rates.
Clients First Policy
Right after opening an account with a credit union, you become a part owner of the institution. This is the reason why credit unions do whatever it takes to please their clients. Of course, owners must be treated well because of their value to the business. If you go to a bank, the employees will be too busy to attend to your needs. This is especially the case for clients with low deposits. However, credit unions strive to give the best services to their clients.
Applying for a loan in a bank is very challenging especially for those financially challenged individuals. For instance, one must have a certain amount of monthly deposits from his or her employer before being granted a loan. In fact, even opening a deposit account is an uphill task. Another benefit of opting for credit unions is that opening a deposit account with them is an effortless process. Moreover, applying for loans is easier compared to doing it in a bank. This is because the application process in credit unions is more client friendly.
Sometimes it can be very frustrating to have an account with a bank because you will be charged for everything that you do with your money. For instance, you need to pay for a fee if you take out your money from an ATM. The truth is that the fees being collection by banks give them a big profit. What is worst is that most of the banks charge unreasonable fees. Even the employees could not explain why they need to charge you with such fees. With credit unions, there will still be fees, but it is much lower. They do not charge you for ATM withdrawals too. Therefore, you will save a significant amount of money from avoiding hefty charges if you choose to do business with credit unions.
In summary, credit unions have a lot to offer to us. Therefore, you should start entrusting your finances to them. It is important to note though that opting for credit unions have its fair share of downsides too. However, you can avoid the disadvantages if you make an effort to find a worthy credit union institution. Hence, Make sure to do your homework before you decide which institution to do business with.