Credit unions may be a better choice over traditional banks. However, few people may oppose to that. Both banks and credit unions share similar roles in the financial world. They both hold money in deposit accounts, and they both lend money to individuals and businesses. The biggest difference between the two is that banks are for-profit businesses while credit unions are non- profit businesses.
Traditional banks are widely accessible when it comes to ATMs. People can count on a variety of bank ATMs to choose from even if it is not their own bank. They also give people the ability to being able to make deposits online using their smartphones. Credit unions, on the other hand, serve local communities. This does not make it too convenient for those looking for ATMs if they were to travel. Accessibility means a lot.
Checking account fees are widespread for traditional banks. They are notorious for making people pay monthly maintenance fees with even the simplest of checking accounts. $12 is the average monthly checking account fee unless a customer was to keep a certain amount of money in their accounts every month. Credit unions charge fewer fees to their customers. People use credit unions more than traditional banks because about 70% of them offer free checking accounts. Their monthly fees are also less than bigger banks.
Interest rates are another factor to take into consideration when comparing credit unions to traditional banks. Credit unions offer accounts with higher-yielding interest rates with lower rates compared to big banks. For those that are more concerned with interest rates, they should open a checking and or savings at a credit union. Credit unions also win the prize for great customer service. According to different studies, credit unions had the highest rated customer service. For those that live in Houston, they can take advantage of a Houston Tx credit union.
Personal and auto loans are easily obtainable through credit unions. Bigger banks have more strict terms and requirements for loans of these types. For those that do not have an active checking or savings at a credit union, they may not be able to take advantage of these offers. Interest rates are lower, and terms are more flexible at credit unions compared to big banks. Businesses go through credit unions to obtain business loans because of contract difficulties with bigger banks. Another thing to note is that credit unions are insured by the National Credit Union Share Insurance Fund and not by the Federal Deposit Insurance Corporation.
For those that want to give a credit union a try and they are not sure if they are right for them, they can do a search to find local unions near them. They will be able to see what services are offered as well as criteria for memberships. Checking with friends and family to see if they have any recommendations for any known credit union is another clever idea.
Overall choosing between a credit union and a bigger bank is a personal preference. However, credit unions win because they are difficult to beat. A Houston TX credit union can help those interested. For those who are not concerned with not being able to access as many ATMs through a credit union, this will be an excellent choice for them. Their low fees and interest rates offered alone are worth opening a checking or savings account. Credit unions can guarantee better service and fewer fees than other banks cannot match. Who would not want to take advantage of loans with lower interest rates and higher rates on deposits?