5 Benefits of a Credit Union
In today’s financial landscape, your choice of financial institution is more important than ever. While banks are a common option, many savvy consumers are becoming more interested in the unique advantages that credit unions provide. If you’re a little fuzzy on the differences between banks and credit unions, you can read our blog post here to learn about the biggest differences between the two. If you’re up to speed though, this blog delves into 5 benefits of credit unions and why choosing to join a credit union could be the smart financial move to make. There are several important benefits of a credit union that you won’t find at even the largest banks!
Member-First Approach
At the heart of every credit union is a dedication to member service. Credit unions are unique in that they are member-owned and exclusively serve their members, allowing them to prioritize member needs above profits. This structure fosters a commitment to exceptional service, competitive interest and savings rates, and minimal fees – a stark contrast to the profit-driven objectives of traditional banks.
Community Values
Credit unions are often deeply involved with their communities, and True Sky is no different. Check out how True Sky makes an impact on our community on our Foundations website here. Most credit unions serve specific geographic areas, and a common requirement of membership is to live, work, or worship in that area. This means that credit unions are owned almost entirely by people who live within the community that the credit union serves. Credit unions are less of a business and more of a public community service organization. In fact, many credit unions were started by members of a community who felt that they were not being adequately served by the banks in their areas. To learn more about the history of credit unions check out this post from the National Credit Union Administration.
Empowerment Through Financial Education
Financial literacy is a very important skill for navigating the world today. Many credit unions have educational resources and counseling to help their members become more skilled in financial literacy and financial planning. Credit unions may also have programs to help you improve your credit score if you have less than perfect credit. To learn more about how the credit system works, what it affects, and how you can build credit see our post here (coming soon).
Democratic Ownership Structure
No matter your account size, when you are a member of a credit union your voice matters. The board of directors that controls a credit union is elected by all members to ensure that member’s concerns and opinions are heard and addressed. This is a very different approach compared to banks, whose board of directors is not democratically elected and whose main concern is generating profit for the shareholders. When you join a credit union you join an organization owned by you and your peers, that exists to provide you with the tools to achieve your financial goals.
Higher Rates, Lower Fees
Credit unions are classified as not-for-profit organizations, which means that legally they cannot make a profit. This is one of the biggest benefits of credit union membership. Because credit unions cannot make a profit, all of the money that would normally become profit is instead put back into the organization and its members in the form of higher rates on savings accounts and share certificates, lower fees, and community empowerment programs. Joining a credit union is not just a personal financial boost; it’s a way to support your community members in need.
Conclusion
While banks have their merits, credit unions represent a distinct and compelling choice, especially for those valuing a community-oriented, member-first approach with financial perks like higher rates and lower fees. As with any financial choice, it is important to consider your personal goals and needs when deciding between a credit union and a traditional bank. We hope this post has been informative about the unique benefits of joining a credit union, and if you decide to join and live, work, or worship in the greater Oklahoma City area, we hope to see you soon in one of our branches!
