6 Benefits of Credit Union Membership
Imagine if your local financial institution allowed you to be an owner, directed its profits back to its customers, offered the best rates on deposits and loans, provided the same conveniences as the big banks but without fees and minimum balances, and enjoyed a personal relationship with you.
How great would that be!
Well, that is…at your local credit union.
Federal credit unions are chartered by the federal government to serve the needs of local communities across America. They provide a slew of benefits to their members:
- Credit Unions are Member-owned
When you open an account at your local credit union, you become an owner of the credit union. That ensures that the credit union will have your financial interests in mind.
- Credit Unions are Not-for-profit
Credit unions don’t concern themselves with making a profit from their relationship with members. They can direct their efforts instead to helping their members improve their financial lives.
- Credit Unions Offer Better Rates
Because they are not-for-profit, credit unions benefit their members in the form of higher interest rates on savings accounts and lower interest rates charged on loans. For example, the average credit union paid a 26% higher rate on a one-year CD than the average bank in September of 2018, and charged a 46% lower rate on a five-year car loan.
- Credit Unions Charge Lower Fees.
Banks often require minimum balances and charge high fees on checking accounts in order to make a profit. Many credit unions, like Pyramid Federal Credit Union here in Tucson, offer no-fee checking and no minimum balance. A study by the watchdog group WalletHub found that checking account fees average $42-$77 at banks, but just $16 at credit unions.
- Credit Unions Offer the Same Convenience and Services as Banks
If you’re looking for online banking, mobile deposits, online bill pay and the other modern conveniences provided by big banks, you can find them at most credit unions. But at your credit union, you get all that without the minimum balance of fees.
- Credit Unions Offer Better Service.
Credit unions are local institutions that exist to serve their members, not stockholders. The CEO of your local credit union lives in your community, not in New York, San Francisco or Charlotte. A customer satisfaction survey last year found credit union members are more satisfied than bank customers.
One of the first credit unions chartered in Arizona, Pyramid Federal Credit Union is celebrating its 89th year serving members on November 29 th. To open an account or apply for a loan and enjoy the best rates and service, visit PyramidFCU.com or call 520-795-7950.
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