There are a lot of options when it comes to banking. Typically, people are drawn to the bigger banks because it’s what they’re used to, and it seems convenient. What most people don’t realize is that credit unions offer many of the same services that the big banks do, but at a fraction of the cost. There are many myths surrounding credit unions. What are they? What services do they provide? Can they compete with the local banks that you know? We’ll try to debunk some of the most common myths below.
Credit Unions offer fewer services than the banks do. The fact is credit unions CAN offer many of the services that the big banks do such as Checking accounts and Savings accounts. Usually, credit unions pay higher interest rates on savings accounts than your local bank. Most credit unions also offer a variety of loans at lower interest rates and even credit cards. In most cases, online services will be available. You may also find that your local credit union offers real people waiting to answer any questions you might have.
Credit Unions aren’t insured. While credit unions aren’t insured by the FDIC like banks are, they are still insured but by the NCUA. The National Credit Union Association provides credit unions with share insurance that insures your deposit up to $250,000. For more information about the NCUA, click here.
No Online Banking. This is simply not true anymore. Credit unions may not have been able to provide online banking years ago, but today, online services are a must, and almost a guarantee with credit unions. In todays fast paced society, it is crucial for members to have access to their accounts 24/7, and credit unions are aware of this. In many cases, your credit union will offer online bill-pay services as well to assist you with your monthly bills.
Good for local banking only. It’s true some credit unions aren’t going to be nationwide like the big banks, but they are still available in your surrounding area. Chances are there is a credit union in your community or county that you have access to. You also have the ability to access your account online. With online banking you don’t have to worry about the location of the credit union. And with debit cards, credit cards and checks, you may never need to visit the office.
These are just some of the myths that are out there about credit unions. If you’re ready to make a change, or if you’re just starting out with your first account, give your local credit union a try. If you’re a federal government employment employee, or live or work in the south loop of Chicago, you won’t need to go any further. Here at SourceONE Credit Union, we can answer any questions you may have about the benefits of joining a credit union, and debunk any myths you may have learned along the way.