If you’ve mainly used banks for managing your finances, you might be pleasantly surprised by switching to a credit union. Both financial institutions may seem to provide similar services, but the perks of a local credit union membership can save you a lot money. If you’ve been on the fence about what kind of account to use, here’s a brief guide to credit unions and their benefits compared to banks. 

Why Local Credit Unions Are Better Than Banks

Financial Benefits

To a bank, you’re just a customer; its goal is to make money from you. As a member of a credit union, you are essentially a stakeholder. Credit unions share all their profits with members. It accomplishes this in various ways, typically through offering lower interest rates on loans, lower service fees, and higher interest rates for savings accounts. Credit unions may also share dividends among members.

Easy Access to Your Money

There is a common misconception that credit union accounts are only accessible through local branches and ATMs, which would make traveling difficult. However, this isn’t true. Credit unions are typically part of larger financial networks, which may share ATMs and provide lower fees than usual for third-party ATM use. Bank customers, on the other hand, typically have to pay hefty fees when using out-of-network ATMs.

Better Customer Service

Unlike banks, credit unions are meant to serve a particular community—for example, a local township, industry, or university. Because of this shared bond, there is a higher degree of trust between the institution and its members, which gives them a more personable experience.

The best credit unions strengthen and empower a local community. If you live near Totowa, NJ, get an account with North Jersey Federal Credit Union. They’ve served the local area for over 80 years, providing mortgages, car loans, and savings accounts. For questions about switching from a bank to a credit union, call (973) 785-9200. More information about their services is available online.