Why a Credit Union Might Beat a Bank
photo credit: TheTruthAboutMortgage.com
Credit unions don’t have the same big money feel as a bank, but there are definitely those who think you might get a better deal from a credit union over a large bank. And right now this is particularly the case because credit unions were unlikely to be involved in sub prime dramas.
One big bonus at many credit unions is they can often offer higher interest rates on deposits and lower interest rates on loans, compared to a traditional bank. Since they aren’t usually involved in heavy (and therefore expensive) marketing and promotion like a larger bank is, they also have more focus on using your money in the best way for you. Plus, because they are non profit organisations, they pay a lot less in tax - usually nothing.
Of course, to belong to a credit union you have to belong to a particular group of people or a particular industry which has its own credit union. It pays to check that a credit union is insured through the National Credit Union Administration, too. Plus you should check they belong to the Coop Network so you can access (fee-free) ATMs of other Coop member credit unions if you’re traveling.
This entry was posted on Saturday, October 4th, 2008 at 6:02 am and is filed under Banks and Banking. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
