Credit Union Or Bank: Which Is Best For You?
Choosing a Bank or Credit Union is easy with this breakdown
There are two options when it comes to storing your money: credit unions and banks. Credit unions are non-profit organizations that exist to serve a certain community. Banks are for-profit enterprises that have more physical locations. It’s important to consider your specific situation when deciding which to use.
Customer service: Members own credit unions and they usually emphasize personal engagement. Credit unions are non-profit organizations. They tend to be more focused on their community members versus banks. But, banks are more likely to have 24/7/365 phone support with more flexible hours at their locations.
Convenience: The localized nature of credit unions means there are fewer branches. To combat this, credit unions have moved to a a CO-OP network. This translates to use of 30,000 surcharge-free ATMs across the United States. National banks have a wide network of branches and ATMs. Regional banks may not have as many branches.
Eligibility: Anyone can walk into a bank and open an account. Credit unions cater to specific demographics or affiliations. This includes certain geographic areas, employee groups, or social groups. Banks have higher minimum balance requirements, making them less accessible for some people.
Other benefits: Credit unions pass on the non-profit status savings to customers. Customers get higher rates on savings accounts and lower rates on loans and credit cards. With banks, responsible card holders get sign-up bonuses and credit card rewards programs.