Consumers have a number of options when it comes to choosing a financial institution. Keep reading to learn some of the reasons why so many people are switching to credit unions.
- Institutional Goals
One of the most important criteria separating credit unions from banks is their goal as an institution. A national bank is a corporate business, so its branches ultimately function to make money for the bank’s primary owners and investors. This means that customers are most likely to carry the brunt of a bank’s financial difficulties—as bank expenses go up, so do the fees and charges forced onto the consumer. In contrast, credit unions seek to provide the same services as a bank without the for-profit aim. Without the need to turn a profit, credit unions can function with customer satisfaction as their highest priority.
- Client Experience
Credit unions are financial cooperatives, which means that any member who deposits funds into the system becomes a partial owner of the institution. Credit unions typically provide a more personal experience than a faceless nationwide chain, and credit union members avoid a majority of large banks’ fees and minimum balance rules. A number of tax exemption laws also help credit unions produce revenue without overcharging their members.
- Operational Overlap
Despite lower interest rates on loans and a slew of money-saving bonuses, a credit union provides essentially the same services as a nationwide bank. Customers can enjoy ready access to checking accounts, saving accounts, and credit cards. In addition, just as the FDIC protects bank deposits, the National Credit Union Association (NCUA) insures credit union funds.
Make the switch to a local, customer service-oriented credit union by contacting Jeanne D'Arc Credit Union—we offer all the helpful amenities of a nationwide chain without the extraneous charges. For more information on affordable student loans and mortgages, visit us online or call (978) 452-5001.