Why Should You Consider Credit Unions?
posted on Wednesday, September 28, 2022 in Financial Tips
In today’s modern world, you need to have a financial institution that you can trust, especially when it comes to your personal finances. And while there are a lot of other financial establishment options to choose from, a credit union can be a good choice for you. Credit unions are member-owned, non-profit financial institutions that can provide traditional services like accepting deposits, making loans, and doing other financial-related activities.
Ever since the first credit union in America opened in 1909, credit unions have helped thousands of people with their personal finances. However, if you’re still wondering why you should consider credit unions, here are some benefits:
Better Interest Rates for You
In general, interest rates on your deposits at credit unions are higher than those of other financial institutions. Having a higher interest rate in deposits can encourage you to save up more money. You may also find that credit unions can offer you lower interest rates on car loans, mortgages, and others. You also can qualify for further discounts.
Pay for Lower Fees
Another great benefit that you can get from joining a credit union is that you can enjoy having to pay lower and fewer fees than other financial institutions. The reason is that credit unions are exempt from paying federal taxes. After all, they are member-owned and are managed by a volunteer board of directors.
Although there are still monthly maintenance and overdraft fees, credit unions can offer you ways to waive or lower them. Be sure to carefully read the policies to learn more about what fees you’ll still have to pay.
Your Money Is Insured
If you deposit your money in a credit union, it will be insured by the National Credit Union Administration (NCUA). It is the US government agency that regulates credit unions. It also manages the National Credit Union Share Insurance Fund (NCUSIF).
Should your credit union close down or fail, the NCUSIF can provide up to $250,000 in coverage for a single ownership account. If you have a jointly-owned account, the NCUSIF can offer an additional $250,000 in coverage for each holder.
Credit unions can offer you excellent financial service and amazing benefits. If you’re ready to open up a new savings account, contact us at Community 1st Credit Union. Talk to one of our C1st representatives so we can help you achieve success.