Today’s consumers have a wide range of options when it comes to choosing products and services. And a savvy shopper considers their choices and weighs their options to get the best product for their specific requirements.
Unfortunately, it is obvious that many consumers do not always research where they keep their hard-earned money. There are many banking options, but research tells us that more than 65 percent of consumers would not change banks even if they had a negative or life-changing experience.
If you are currently banking with one of the “big banks” and are not satisfied with their services, there are many reasons to consider banking with a credit union. If you’re not entirely convinced that they may be the right path for your finances, here’s a breakdown of the benefits of banking with a credit union.
Personalized customer service
Because credit unions are people-by-people banks and have smaller memberships than typical larger institutions, you can get personalized personalized service. It is a much more intimate relationship than you would have in a traditional bank. Credit union employees truly know you and are committed to your success as a member. This is because their focus is to make every consumer interaction personal, with no lines, long phone waits, and canned responses.
Accessibility
Since they serve their local communities, most of the time the branches are not available outside of their service area. To compensate for that, they sometimes reimburse members for ATM fees or offer a shared ATM network if members have to go offline to access their money.
Structure
Credit unions are owned and operated by their members. The moment you make your first deposit, you will have the right to vote.
Lower account fees
They also have lower fees across the board because they have lower overhead costs. Because they are generally smaller operations than large banks, they can transfer their overall savings to their members. According to Bankrate.com, more than 75% of credit unions offer free checks, compared to 40% of banks. And many don’t stop there. They even pay rewards to members in the form of high interest or dividends, cash back, and other benefits like ATM fee refunds.
Monthly maintenance fees are lower, and members don’t have to maintain such a high account balance to escape these fees.
Serving the underserved
Credit unions serve those who are generally excluded from the traditional banking system. This covers the large number of immigrants in communities that would not otherwise have access to necessary financial services.
Supporting the local community
Money put into your local credit union supports its members and the local community. They funnel funds back into the local economy in the form of small business loans, home purchases, and loans that help members achieve their financial goals.
Interest rates
They offer higher yield savings and checking account rates. Good luck finding an interest-bearing bank account at a megabank. They yield next to nothing for their account holders.
No scams:
Employees are not pressured to reach unreasonable sales targets. So rest assured, no one is going to open a secret account behind your back.
Federally insured
Your money is no safer at a large bank than at a local credit union. Like the FDIC in a traditional bank, deposits of up to $ 250,000 in a credit union are insured by the NCUA, an agency backed by the federal government.
First name base:
They take the time to get to know their members. You will be a name, not just an account number.
Technologically advanced
Credit unions have come a long way from their once obsolete style of banking. Today, the technology used in a credit union is as advanced as a megabank. They have online banking options including mobile check deposit, smart chip cards, mobile apps, online bill pay, electronic statements, and more.
If you are looking to move your money from a traditional bank to a credit union, what is holding you back? I would encourage everyone to research their local credit union to see what they can offer. At the very least, opening a checking or savings account is worth it. You will pay less in fees and get a more personalized service.