One of the biggest sources of frustration in today’s financially strapped time is the banking system. The complaints are nearly endless and we hear them all the time. “Their fees are too high.” “Their service is terrible.” “They don’t care about me as a customer.” These are all completely understandable and reasonable. Well, what if we told you that there was a solution to your complaints and it’s right under your nose? All you have to do is move your bank account down to your local credit union. They offer many of the same benefits as your local bank for lower prices AND they offer a more personal banking experience.
Many credit unions have all of the same services that are available at banks including checking and savings accounts, auto, home and business loans and even investment portfolios and credit cards in some cases. They offer rates that are MUCH lower than standard banks AND have much lower fees for things like starting an account or using your debit card.
Credit unions can afford to do this because they are non-profit co-ops owned by their members. Instead of responding to a bunch of corporate investors, credit unions answer to their members and are trying to look out for their best interests. Credit unions also offer their members special benefits such as cash back when you use your debit card; refer-a-friend bonuses and credits back to your account when the credit union has leftover money. The drawback to these lower rates and fees is that they can’t afford to offer the most cutting edge services that banks can offer. However, these services are just luxury items that you probably wouldn’t miss too much if you didn’t have them.
Lower rates and added benefits aren’t the only areas where credit unions excel. Customer service is another place where a credit union beats out your average big bank. Because they are on a much smaller scale and much more localized, they rely on good customer service to draw in new members. This means that you will have more conversations with actual people that want to help you.
Credit unions also work together to make sure all of their members are happy. Many credit unions form alliances with each other to allow members to use ATMs outside of their network at no cost. This sure beats paying extra money to use an ATM just because it’s from another bank. If you are worried about whether or not your money will be insured, don’t. Credit unions are insured by the NCUA, or National Credit Union Administration, which provides up to $100,000 insurance on every account.
There are many reasons to join a credit union and give up on your big banking experience. You can get better, more personal customer service and receive many of the same benefits that you have come to love from your banks, all at a much lower price. While they may not have the same services that you are used to from large banking institutions, a credit union is similar enough that you can afford to lose some luxuries to get big long term savings. If you have used a credit union or have some advice on how to save, leave them in the comments below.
