You may already be familiar with the advantages associated with credit unions. These nonprofit organizations are well known for having lower fees and better rates on credit cards and loans than banks do. Even so, many myths will make newcomers hesitate from placing their test in these cooperative institutions.
The good thing about a financial institution like a credit union in Houston TX is that it is more useful than just for a particular product, such as a car loan or a mortgage. Below we have gathered some of the lesser known benefits of credit unions that you may want to check out:
1. Your money stays protected
Since a credit union is a federally chartered institution, your money would never be safer anywhere else than there. The National Credit Union Share Insurance Fund that looks after the Federal Deposit Insurance Corp will also extend its protection to your money. Each member is entitled to an insurance worth $250,000.
2. Your money is in familiar hands
Your local credit union is likely owned by the members of your community. Other unions are run by members of a certain workplace. For instance, a farmer’s credit union will be geared towards helping the farmers in a community. In short, the social mission of the union would be to provide financial assistance to the people in its community.
Now, consider a bank, which is a for-profit institution. Its purpose is to attract as many clients as it can. That is why it snags them with lower interest rates. Since a credit union is non-profit, it might have higher interest rates but at low fees.
The CUNA or the Credit Union National Association that on average, the NY credit unions provided $85 and $178 worth of financial benefits to each family member and household, respectively. Those are the figures for just this year.
3. Your money is used for constructive purposes
More than billions of dollars are spent on annual advertising campaigns by banks. Smooth marketing is what banks are good at, which is why the credit unions can’t compete with their consumer outreach ideas. Even when credit unions advertise, they don’t splurge on it. They’d rather use the profits earned in making loans cheaper for their members.
4. You get more than your money’s worth
Many people prefer banking at credit unions because of other perks as well. For instance, credit unions in your area may also be offering individual health insurance. Then some institutions also provide financial advisory services to the community members who need them. Ask your local credit union if they are offering any free classes for community enrichment, and you could be pleasantly surprised!
5. You enjoy rights
At least 100 million Americans are now banking with credit unions! One of the things that undoubtedly attracts them to these financial institutions are their rights. Being owners and not just members, they can vote while electing the board of directors for the union.
Furthermore, the board is composed of other members of the credit union. They are in charge of:
- Saving and checking accounts
- Loans for auto-consolidation, home, and home improvement
- Debit and credit cards
- Money orders
- Online bill payment
- Safe deposit boxes
6. You can expect better services due to technological advances
Credit unions embrace new technology quickly due to their smaller size. For their members, it would mean better services from the financial institution. Millennials consider technology as part of value proposition, which is why you and other millennials will appreciate this. For instance, mobile apps that do the banking for you and other third-party features that can make banking easier and faster will always be a good thing.
If you are still vacillating between leaving your bank and switching to a credit union in Houston TX, now is the time for a decision! To most banks, you aren’t more than your bank account. But when you bank with a credit union, you get embraced by a community feel. They care for the community and thus by extension, you. If you want service that is customer-centric or at the very least community-minded, come on over to any Credit Union in Houston TX!
