Why You Should Leave Your Bank And Join A Credit Union

You may have taken out a mortgage for your home, or perhaps you’ve had the same savings account for years. Is your bank actually helping you, or it is doing more harm than good? It may be a good decision to join a credit union if your bank hasn’t been that supportive. You may be surprised with some of the benefits of a credit union membership.

A bank, in case you aren’t aware of this yet, is looking out for only one entity at the end of the day – themselves. It’s a harsh reality, but it’s perfectly understandable, as a bank is no different from any other business that’s in it for the almighty dollar. So what’s so great about a credit union? What is it exactly? A credit union is a non-profit organization that is there specifically for its members. A credit union is a union of people who take care of their own money. Everybody in a credit union can make decisions on behalf of the rest of the union, unlike banks, whose decisions are governed by the board of directors and the bank’s stockholders – a pretty select bunch. Credit unions have their own board of directors elected by union members themselves. Sounds good, right?

A credit union offers many other perks to members, such as lower interest rates for those applying for any kind of loan, and higher payout rates if withdrawing from a savings account. A credit union member also gets a whole lot of perks for free, such as personalized services, credit cards and checking accounts.

There are some people skeptical about credit unions because they believe that their money isn’t safe. These doubters need not worry anymore, as the law requires all credit unions to be federally insured in the same way that banks are. So there really shouldn’t be any question in which establishment you should choose.

Now that you’re convinced, go a step further. Where do you normally spend your hard-earned money? Many of us spend our cash on groceries or merchandise purchased at nearby shops and malls. Your next step would be to police your spending habits just as you are developing good saving habits. When life’s little surprises catch you, you can have more money saved up this way. Research is key to success. With the help of that all-knowing tool called research, you can get higher interest payouts and lower interest rates for loans with your credit union.

For great saving and investing advice including efts vs mutual funds, see the money saving tips at our site.