When trying to decide if you should use a bank or a credit union you will find that it is not an easy choice. They offer almost the same types of services, which will include the different types of accounts as well as stocks and safe deposit boxes. Because the services are similar that is what makes it difficult when you are trying to decide on where you should do your banking.
The Pros Of A Credit Union
There are many pros when you are looking at a credit union. The top on the list of pros is that a credit union is a non-profit organization. What this means for you as a customer is that it is focused on giving you the best services and quality to its members. You will find that the interest rates on loans are generally better at a credit union because of this fact.
A second pro of a credit union is that if the credit union earns more than what it costs them to operate that year the extra income is shared among the members of the credit union. This is called dividends.
The Cons Of A Credit Union
Even though the interest rates offered by a credit union are better than a bank you might find that other fees are much higher. An example is the ATM fees. You might find yourself paying every time you use the ATM. Those costs can add up.
You will be required to meet a certain criteria before you can join the credit union. It is not like a bank where you can walk through the door and open an account. If you do not meet the requirements you will be turned away.
The Pros Of A Bank
There are several different pros when opening a bank account. The first of them being that it is typically easy to get an account as long as you are eighteen years of age and do not have any bank accounts that are not in good standing.
The other large pro is that with a bank you will find several more branches than with a credit union. This will make it much easier to do your banking.
The Cons Of A Bank
When you are doing your banking with a traditional bank you will learn that banks are a profit organization. This means that the fees and interest rates you will be charged will be much higher than those of a credit union. This is so the bank can turn a larger profit throughout the year.
When you are trying to select which type of banking facility to use it will all come down to how you will use the financial institution. If you want something that is a little more personal and you want people to remember your name a credit union might be the perfect solution for you. However if you which to have banking that is a little more in depth you might want to consider using a traditional bank.