subject: Why A Credit Union Is A Superior Place For Your Money [print this page] Banks have but one advantage over a local credit union: heritage. Name recognition, in other words, which is all many people need to have in order to make their choice. It's why popular brands continue to be sold, long after others have surpassed them in quality. It's why brand messaging is always among the top three important priorities for any advertising campaign. While "banks" are not a specific brand unto themselves, they certainly have a ring of familiarity with anyone who wants their money in a safe place. But are they really the best place for your savings? Here's why their competition is superior.
Personal Ownership
You will never be anything more than a customer to your bank. Yes, you may be valued on those terms, but you're never going to have the slightest say in how they run their business. With a credit union, however, this relationship is turned on its head to some extent. You're not so much a customer, as you are a partner. When you put your money into your account, you are taking a share in the business. It is a non profit organization, believe it or not. The profits made are designed to be funneled back to the members. This fact alone makes it a far superior choice for most people.
Low Interest Rates
You will almost always be able to get better interest rates on a credit card from your local bank than you could from a national company like Chase. However, no bank can afford to give the kinds of interest rates to their members like a credit union can. Giving you the same freedoms you'll find with the national cards for a much lower interest rate, credit unions save their members money every time a transaction is made. These aren't small differences, either. Many national credit card companies charge in the high teens for even people with good records. At a reputable credit union, you can find cards with APRs in the single digits.
Reduced and Eliminated Fees
Banks across the country have become fee crazy. You can't turn around without finding a bank customer complaining about it, and they have a right to complain, as these fees are sudden and out of control. What are you going to do, though? Take your money out and start stuffing it in the mattress? Of course not. You turn to a credit union, where they have no incentive to start charging their members ridiculous fees.
