Finance Corner: Banks vs. Credit Unions

Recently I have had numerous people tell me that I should invest in putting money in a credit union. I never really understood what credit unions were. In my ignorance, I thought that credit unions were only for the rich people and that banks were for normal people. In reality, credit unions actually handle money better than corporate banks.

Credit unions offer lower interest rates on loans than banks and higher dividends on your deposits which in turn keeps more money in your pockets. For instance if you needed a car loan, a credit union will more than likely offer you a lower interest rate than at a bank.

Your money is more protected at a credit union than a bank. Think about the corporate scares we have had lately with corporations such as Bank of America, we finally realized that our money could potentially be unsafe.

Credit unions also help you make better financial decisions considering the things in your life. Instead of pushing you to sign up for different things that will cost you more money, credit unions provide all avenues for you to choose; helping you to pick the right road that is best for you.

I’ve decided to look into joining a credit union. I am still learning about them but I’ve provided some info that I have come across to you guys. I encourage you all to research yourself to see if they are something you would possibly want to be apart of.

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2 Comments (+add yours?)

  1. melanie
    Apr 08, 2011 @ 03:53:04

    good to know. some professions have credit unions for their employees tailored to special interests. i must say banking at wachovia is just convenient because it has several locations across town.

    Reply

  2. David
    Jun 27, 2011 @ 23:10:16

    I’ve never been a part of a bank. It’s always been a credit union for me.

    I could never be happier. Rates are better than local banks, and customer service is always superb. I never understood why people would want to stay with a bank. Convenience I suppose.

    Reply

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