Regardless of what life stage you’re in, finances dictate your freedom and future. You might think a bank is the only safe option when it comes to financial matters, but depending on your needs, a credit union might make more sense. Below are the basics of credit unions along with why you should consider becoming a member of one.

Everything to Know About Credit Unions & Their Member Advantages

1. What Is a Credit Union?

A credit union is a not-for-profit financial cooperative body that is owned by its member customers. The members pay a small fee to purchase part of the institution in return for the services offered. There are countless credit unions across the country and each one is dedicated to its local members.

2. Why Should I Become a Member of a Credit Union?

Since a credit union is owned by its customers and is not profit-centric, they offer lower interest rates, better savings rates, and fewer fees than banks. They can also focus on personalized service because they are smaller. The main goal is to enable its members to save as much as possible and prepare for their futures. You can get personal and consumer loans, mortgages, credit cards, and other financial services just as you can from a bank. They have over 30,000 ATMs available for use and all deposits are backed by the National Credit Union Administration, which is part of the federal government.

Another difference between banks and credit unions is the terminology. For example, checking accounts are known as share draft accounts and savings accounts are known as share accounts at a credit union. It’s helpful to become familiar with some of these terms prior to obtaining a membership.

3. How Do I Become a Member?

There should be a local credit union in your area. Research online and ask your colleagues, neighbors, and friends if they’re a member of one. If you wish to become a member, you’ll buy a one par value share of the financial institution, also known as a minimum opening deposit, which serves as a membership fee. These range in cost between $5 and $25 plus any fees that are typically charged to open an account.

If you believe a credit union is a good fit for your financial needs, then consider joining Spirit of America Federal Credit Union in Lincoln, NE. Their team believes that every member should have access to affordable and secure financial assistance to help them plan for the future. They aim to provide exceptional customer service, whether you’re just beginning to save, have a mountain of student loan debt, or want to need to secure a favorable mortgage for your first house. Visit them online to view their full list of products and services or give them a call at (402) 467-1102 to learn more about becoming a member.