When choosing a financial institution, you have two options: banks and credit unions. Banks are for-profit organizations, and credit unions are not. Both are in the business of earning profits and issuing dividends to stockholders. However, credit unions are run by and for their members. That means they are more likely to provide personalized service and attention to their members.
Unlike banks, credit unions have a smaller geographical footprint, meaning they only have branches in certain areas. For example, the Boeing Employees Credit Union has branches in areas related to the Boeing corporation, and is not open to non-members. Banks, on the other hand, have branches all over the world, and can offer their services from anywhere. The biggest advantage of banks is convenience, but you also get other benefits from big banks, like technology.
Despite the convenience and online capabilities of banks, credit unions can’t compete with them when it comes to technology and convenience. While credit unions are more affordable, banks may offer higher interest rates on deposits and loans. If you value personal service, credit unions are the right choice for you. Listed below are some pros and cons of using a bank and credit union.
Do you use a bank or a local credit union? Which is better? It all depends on your personal needs. Credit unions have the advantage of personal service, but banks have more services and products. Compare products and services offered by both financial institutions before deciding which is right for you. Make sure to consider their fees, daily balance requirements, and interest rates before deciding on a bank or credit union.