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Credit unions, or financial cooperatives owned by the members, provide excellent financial support compared to banks and offer a safe way to build credit. Their key mission is to provide affordable and reliable financial services to their members. They are not established to squeeze their customers of their finances for the sake of making huge profits by charging high fees. This ultimately results in better member satisfaction and financial security.
Credit unions came around because many banking institutions were not satisfying their customers. They didn’t have incentives to provide better and more affordable services to their customers, and they became characterized with lackluster customer service. This kind of an environment opened the way for credit unions to rise in popularity.
Why should you keep your money in a credit union? Some of the benefits of joining a credit union in 2018 are explained below.
In credit unions, you are a member, not just a customer. There is a myriad of benefits that come with a membership. You are actually a part-owner of the organization. This is very important since you will have the right to vote in the annual general meetings, receive better services, and receive dividends.
This level of ownership is sure-fire security for you and gives you more confidence in the organization. You cannot get such a benefit in banking institutions. Moreover, in credit unions, the owners and the customers are the same, hence the decisions made usually benefit everyone.
If you want to enjoy better and more affordable rates in 2018, then credit unions should be the next thing on your mind. You will be able to get lower rates on personal loans and credit card products. Since credit unions are not-for-profit organizations, they share surplus funds in the form of better interest rates. They tend to have lower rates on personal loans compared to retail banks, In addition to that, credit unions offer high interest rates on deposits, thereby benefiting the members as well.
As mentioned earlier, credit unions are not-for-profit, and additionally they get some tax breaks and exemptions. These savings ensure that unions do not put pressure on the members by raising fees. They offer free accounts with no minimum balance requirements. There are generally no fees from credit unions.
Superb Customer Servicer
Do you want to have an easy time when contacting financial services? Well, credit unions have the best customer service after gaining a distinct reputation for speedy service. Since their members are their customers, the services are geared toward them. They are able to know their customers well, focus on their needs, get feedback from the, and serve them properly.
Convenient Payroll Deductions
Credit unions offer an easy way to save through their convenient payroll deductions. Payroll deductions provide a simple route to saving. This is because the money is deducted before it goes to the bank. You don’t really feel the impact, yet you get the benefits of saving. Furthermore, you can save as little or as much as you want on a regular basis. The regular saving allows you to meet unexpected needs and plan for your own investments.
Service to the Community
Credit unions are owned by members of a particular community or workplace. This could be residents of a particular community pr employees of a certain organization. For example, a farmer’s credit union benefits farmers in a particular area. They have a social mission geared towards helping the communities where their members live. They follow the ‘People Helping People” model.
Free Financial Information
Since credit unions want their members to be financially responsible and stable, they offer free financial education. This can be through seminars, workshops, or other training opportunities. In some cases, they provide this information online. You will be able to get guidance on your financial needs free of charge.
There are a lot of benefits to joining a credit union in 2018. If you are tired of paying fees to cash your checks or being charged very high interest rates on personal loans, then you can find a better option by joining a credit union. They work for the benefit and welfare of their members and do not try to obtain the best possible return from their customers.
Anybody can join a credit union. Each and every credit union is formed to serve members that have a sense of community. This can be the workplace, geographical location, family, or another type of membership. In most cases, you can retain membership even if you change your job or move to a different location. This flexibility makes membership comfortable, and is a big indicator on why credit unions are growing in popularity.
Author: Jeff Gitlen