Posted by ITPN Writer | Posted in Personal Finance | Posted on 29-06-2016
Tagged Under : are credit unions safe, bank v credit union, bank vs. credit union, banks v credit unions, banks versus credit unions, what do i do with my money, what is the difference between banks and credit unions, what is the downside of banks, what is the downside of credit unions, what is the upside of banks, what is the upside of credit unions, where should i bank
Technology, Speed and Convenience! Bank Has It.
Banks have a long history: 1472
Credit Unions have a shorter history: 1908
Banks are for profit. They do not hold your money for you. They invest it.
Credit unions are not for profit. They are not non-profit. They invest the profits into it’s account owners in the form of lower interest rates and reducing fees.
Banks focus on advertising, to convince you they are the best business around and lobbying, to convince the government to reduce or impose regulations that maximize their profit, and risk assessment to please the investor.
Credit Union focus on cooperative effort and customer service because you are a member, part owner. It’s not a checking account, it’s a “shared draft”. And it’s like the senate…every member gets one vote in electing board members. That’s pretty cutting edge for democracy if you know anything about how our President is elected in the U.S.
Banks Are Easier To Work With But Credit Unions Work With You Better
Banks keep longer hours in more locations with more ATMs. Automated everything! The kinks in online banking have been well worked out by big banking. They don’t want to serve your in person, that’s just inefficient use of time when maximizing profit.
Credit unions close early. That’s a great perk for their employees, isn’t it? They want you in their branch, and building that relationship is priority and key. But it can be hard to get cash out at 5:30 in some other town…not without really high fees of using a bank’s ATM.
It’s easier to travel internationally with a bank, rather than a credit union.
Both institutions are safe for your funds thanks to FDIC for Banks (oh, AND the Office of the Comptroller of the Currency AND the Federal Reserve) and the National Credit Union Agency, NCUA is tasked with operating and managing the National Credit Union Share Insurance Fund.
Customer Service and Lower Interest Rates! Credit Unions Have Got You.
Regardless of where you bank you really need great credit to get great interest rates. You can indirectly BUY credit, did you know? Click here to check out the Sub Prime Credit Store.