Consumers today have a full range of options when choosing products and services. And a wise shopper considers their choices and weighs their options in order to get the best product for their specific needs.
Unfortunately, it’s obvious that many consumers don’t always do their research to find out where they keep their hard-earned money. There are many banking options out there, but research tells us that over 65% of consumers would not switch banks even if they had a negative experience or a life change.
If you are currently doing business with one of the “big banks” and are not satisfied with their service, there are many reasons to consider doing business with a credit union. If you’re not quite sure they can be the right way for your finances, here’s a look at the benefits of banking with a credit union.
Personalized customer service
Because credit unions are banks for the people by the people and have smaller memberships than typical large institutions, you can get personalized, personalized service. It’s much more of an intimate relationship than what you would have in a traditional bank. Credit union employees really know you and are invested in your success as a member. Indeed, their goal is to make every interaction with consumers a personal one, without lines, long phone waits and predefined answers.
Since they serve their local communities, most of the time, branches are not available outside of their service area. To compensate for this, they sometimes reimburse members for ATM fees or offer a shared ATM network if members need to exit the network to access their money.
Credit unions are owned and managed by their members. The minute you make your first deposit, you will be eligible to vote.
Reduced account fees
They also have lower costs across the board because they have lower overhead costs. Since these are usually smaller operations than the big banks, they can transfer their savings on overhead costs to their members. According to Bankrate.com, more than 75% of credit unions offer free checking, compared to 40% of banks. And many don’t stop there. They even pay rewards to members in the form of high interest or dividends, cash back rewards, and other perks like reimbursement of ATM fees.
Monthly maintenance fees are lower and members don’t have to keep such a high balance in accounts to escape these fees.
Serve the underserved
Credit unions serve those who are generally excluded from the traditional banking system, which covers the large number of immigrants living in communities that would otherwise not have access to necessary financial services.
Support the local community
Money deposited in your local credit union supports its members and the local community. They channel funds to the local economy in the form of loans to support small businesses, home purchases, and loans that help members achieve their financial goals.
They offer higher yielding savings and checking account rates. Good luck finding an interest-earning bank account in a mega-bank. They give up next to nothing for their account holders.
Employees are not required to meet unreasonable sales targets. So rest assured, no one will open a secret account behind your back.
Insured by the federal government
Your money is no more secure at a large bank than it is at a local credit union. Much like the FDIC at a traditional bank, deposits of up to $ 250,000 in a credit union are insured by NCUA – a federally funded agency.
First name base:
They take the time to get to know their members. You will be a name, not just an account number.
Credit unions have come a long way from their once outdated style of banking. Today, the technology used in a credit union is just as advanced as a mega-bank. They have online banking options which include mobile check deposit, smart cards, mobile apps, online bill payment, electronic statements and more.
If you’re looking to transfer your money from a traditional bank to a credit union, what’s holding you back? I encourage everyone to research their local credit union to see what they can offer. If nothing else, it’s worth opening a checking or savings account. You’ll pay less and get more personalized service.
Source by Patrick Redo