Why Should You Choose a Not-for-Profit Financial Institution?

posted on Thursday, September 30, 2021 in Announcements

Financial Blog | a man and a woman on a couch

Many people think credit unions are exclusive clubs. However, this idea is far-fetched. In fact, unlike large banking institutions, credit unions are known as not-for-profit organizations. They are cooperative financial institutions that put their members first. 

Like a traditional bank, you can make deposits and apply for loans in a credit union. As you know, banks provide many financial services to their customers. But credit unions offer many things a bank doesn’t. Here are some of the advantages you get from joining a credit union:

Financial Education

If you have no idea of how to properly manage your finances, your local credit union can help you with it. They can provide you with the necessary financial education as part of their services. 

There are many institutions offering online and in-person seminars on financial management, retirement planning, and even fraud prevention. You may also find a digital library where you can find topics about financial literacy.

Better Rates

More people are becoming interested in joining credit unions because they offer better rates. You can get lower fees and loan rates, thanks to their tax-exempt status and not-for-profit business structure. Instead of maximizing profit for shareholders and investors, credit unions reinvest their earnings in their members, which helps reduce fees such as overdraft penalties.

When it comes to certificates of deposit (CD) and savings accounts, these institutions offer better interest rates. The 2021 National Credit Union Administration report stated that during the first quarter of the year, credit unions had an average rate of 0.76 higher than that of banks for a five-year CD. 

Commitment to Its Members

The thing about credit unions is that you are not treated as “just another customer.” Once you decide to work with your local credit union, you are treated as a family. The institution functions as a cooperative, which means it is owned and controlled by its members. All decisions are made to benefit its owners, excluding the investors or shareholders.

Part of their commitment to their members is to provide them with excellent member service and a friendly atmosphere. If you go to a local credit union, expect personal attention from them, as their goal is to meet all your needs. Once you become a member, you’re treated as a family for life.

Choosing the right financial institution is crucial, so it’s best to select the one that will help you manage your money prudently. Community 1st Credit Union is a trusted financial organization that makes it possible for you. If you want to learn more about us or becoming a credit union member, give us a call today.