With the declining reputation of major banks and mistrust among customers, credit unions are becoming the next front of the personal finance industry!
Personal finance is a matter of significant concern, and especially with increasing bank fees, many customers are looking for alternative financial institutions. Some people are starting to believe that “credit unions” are the best way to save their wallets from bank’s fee. Credit unions have gained significant importance in the past few years. The origin of credit unions goes back to 1934 when the US President, Roosevelt, signed the Federal Credit Union Act, which laid the foundation of not-for-profit financial cooperatives.
As described by the World Council of Credit Unions,
“Member-owned, not-for-profit financial cooperatives that provide savings, credit and other financial services to their members. Membership is based on a common bond, a linkage shared by savers and borrowers who belong to a specific community, organization, religion or place of employment.”
As per the current records, credit unions have more than 94 million members until now and counting more. Credit unions offer secure and flexible personal finance solutions to its members. The only purpose these credit unions are devoted to is their customers. Credit unions are not-for-profit financial cooperatives, which means loans are offered at a lower rate and better interest is provided against your savings. Most of the credit unions offer exclusive benefits to their members including free checking and free debit/credit card services.
3 Quick Facts About Credit Unions
- More than 7,000 credit unions: According to the current statistics, there are more than 7,000 credit unions within the United States and one can conveniently find a credit union within the city. You can join a credit union as per your requirements and financial needs.
- More than 65,000 ATMs (CO-OP Network): Credit unions offer the same convenience as that of other leading banks. Credit union members can use CO-OP Network and some additional ATM service providers with more than 65,000 ATMs to use.
- More than 5,000 shared branches: The CU Service Centre is a network of different credit unions that offer personal finance services worldwide. Credit unions have more than 5,000 branches under shared, sister, and partner branches. It is possible to find credit unions with all banking services including on-line banking, email alerts, 24 x 7 service centres, and mobile banking services.
7 Reasons You Should Choose Credit Unions over Banks
- Credit unions are established with the sole purpose to help their members reach their financial goals. There are no stockholders to benefit from your money.
- Any fee or penalty charged by credit unions is returned to the customers in the form of higher savings rates and lower loan processing/interest fee.
- Credit unions offer better personal finance products. With an improvement in the loan procedure, members can get loans easily and that too at low interest rates. Credit unions are offering innovating personal finance solutions for the growing needs of their members.
- Credit unions offer several free services including free credit cards, free debit cards, and free checking service. All the deposits made by the members are insured under the National Credit Union Share Insurance Fund.
- Credit unions have received better feedbacks in the past 20 years as compared to their counterparts. Customers prefer credit unions for their transparency in fee structure and high level of customer satisfaction.
- Credit unions offer membership to anyone and everyone in a group. All you need to do is to join a union once and you are a lifetime member of that union. Membership offers lifetime benefits to the members of credit unions and their family members (upon joining).
On top of all of these benefits, credit unions are established to offer what people look out for: a trustworthy personal finance service. In 2009 alone, credit union members saved over $7.3 billion with credit unions as compared to the banks. Until now, credit unions have justified their motto:
“Not for profit, not for charity, but for service.”