Bank or Credit Union?
If you are using a bank, switching to a credit union could be a better alternative for your family.
On the outside banks and credit unions look very similar. But, how they are created and function could not be more different.
Banks, in general, are driven by profit. The management “decision makers” of bank’s are pressured by their investors to make decisions based on the bottom line. This causes the bank to not always have the best interest of the customers at heart. Customers sometimes experience this through fees, high loan rates and low dividends.
Credit Unions are not-for-profit. They are less concerned about the bottom line and are more concerned about how much of an asset they are to the community and its members. Internally, they have no investors or stockholders, like banks. When you join a credit union, you are actually becoming a member and buying a share into the company. Each member has one vote in the election of the board of directors. The board of directors are all volunteers, who unbiasedly approve credit union decisions on behalf of its members. This enables credit unions to offer a banking service where any extra profits go back to the community through community service and sponsorships. Members also benefit through free checking, cheaper overdraft fees, low minimum balance requirements, better loan and dividend rates.
I know it could be a hassle to go through the process of switching banks. But, you could be saving big if you are paying a monthly fee just to have a checking account or occasionally using your banks overdraft system. Those same services are almost always cheaper or free, in some cases, at credit unions.
I am not saying that credit union’s are for everyone but it might be something to consider. I know our family has benefited financially by using a credit union. Who knows, yours could too.
Small ₵hanges that make big difference$