Today’s consumers have a wide range of options when choosing products and services. And a smart buyer thinks about his choice and weighs up his choice to get the best product for his specific needs.
Unfortunately, it’s evident that many consumers don’t always research where to keep their hard-earned money. There are many banking options, but research shows that over 65 percent of consumers would not switch banks even if they had a negative experience or a change in their lives.
If you are currently doing banking with one of the “big banks” and are not satisfied with its services, there are many reasons to consider banking with a credit union. If you’re not entirely convinced that this can be the right way to go about your finances, here’s a breakdown of the benefits of banking with a credit union.
Personalized customer service
Since credit unions are banks for the people and have smaller memberships than the typical larger institutions, you can get a customized personal service. It is much more of an intimate relationship than a traditional bank. You really know the employees of the credit cooperative and are invested in your success as a member. This is because they focus on making every customer interaction a personal one, with no lines, long phone waits, and pre-made responses.
Because they serve their local communities, branches are usually not available outside of their service area. To compensate for this, they sometimes reimburse members for ATM fees or offer a shared ATM network when members need to leave the network to access their money.
Credit unions are owned and operated by their members. As soon as you have made your first deposit, you have the right to vote.
Lower account fees
They also generally have fewer fees because they have lower overhead costs. Since they are usually smaller companies than large banks, they can pass on their overheads 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 here. They even pay members rewards in the form of high interest or dividends, cashback and other perks such as ATM fee reimbursements.
Monthly maintenance fees are lower and members do not need to have as much funds in their accounts to avoid these fees.
Serve the underserved
Credit unions serve those who are normally excluded from the traditional banking system. This covers the large number of immigrants in communities who would otherwise have no access to the necessary financial services.
Support the local community
The money deposited in your local credit union supports its members and the local community. They channel money back into the local economy in the form of loans to support small businesses, home purchases, and loans that help members achieve their financial goals.
They offer higher savings and checking account rates. Good luck finding an interest-bearing bank account at a megabank. They give in next to nothing for their account holders.
Employees are not put under pressure to achieve inappropriate sales targets. So just rest, no one will open a secret account behind your back.
Your money is no safer at a large bank than at a local credit union. As with the FDIC at a traditional bank, deposits up to $ 250,000 are insured with a credit union at NCUA – an agency supported by the federal government.
They take the time to know their members. They are a name and not just an account number.
Credit unions have come a long way from their once outdated banking style. The technology of a credit union is as advanced today as a megabank. They have online banking options with mobile check deposits, smart chip cards, mobile apps, online bill payment, electronic bank statements and much more.
If you want to transfer your money from a traditional bank to a credit union, what is holding you back? I want to encourage everyone to research their local credit union to see what they can offer. If nothing else, it is worth opening a checking or savings account. You pay less fees and get a more personalized service.