Why choose a credit union?

Shopping for a new bank can be an exhausting task. Selecting the correct bank is important to ensure the money deposited in accounts are safe and consumers get the best rates. Shopping around for the right banking institution can take some time, especially since there are so many different options available. Because of the variety of choices available it is important to pick the best option for the consumer’s financial needs. Both banks and credit unions offer banking options that consumers need. However, credit unions have been increasingly becoming popular. Ownership Credit unions are owned by their members. Thus meaning those who have an account with the credit union are part owner too.

However, membership is limited and all applicants must be eligible to join. Eligibility varies among the different credit unions. If approved to join, members will be a part of the group of owners and help determine how things operate through votes and input. Non-profit Credit unions are non-profit organizations set up to help members save their money, get loans and have peace-of-mind knowing their money is safe and secure. Since they are non-profits, credit unions are not out to make money like many for-profit banking institutions are. This is why they can offer free accounts and lower interest rates.

Customer service Credit unions are there to support the local community, which is why so many branches offer superior customer service. They are there to help their members and it shows in how they service their financial needs. This keeps members coming into the branch for more personalized service, versus using their computer. Fees and rates Since they are not-for-profit, the fees tend to be lower at local credit unions. Many of the accounts are either free or have a low minimum balance required to qualify as a free account.

Credit unions have also been known to offer lower interest rates on loan milford, credit cards and mortgages. It does not matter if a Milford consumer is in need of a place to save his or her money or is looking for a loan, shopping around is key to finding the perfect bank.

Both banks and credit unions offer similar products with competitive rates. With a little comparison, consumers can select the best option for their needs.