Banks and credit unions may seem virtually identical, but there are critical differences that affect everything from interest rates to the level of attention customers receive. While traditional banks may have more prominence—thanks mostly to large advertising budgets—credit unions are actually the better choice for almost all your financial needs. Below are a few important reasons to trust a credit union over a large national bank.

Why You Should Choose a Local Credit Union

They Are Not-for-Profit

Banks are for-profit corporations, so every customer is treated as a profit center for the shareholders. Credit unions, by contrast, are owned by their members, giving the financial institution an entirely different purpose. This approach often results in lower fees, more individual personal attention, and products designed with the financial health of their members.

They Offer Lower Interest Rates

Their not-for-profit status gives credit unions the ability to offer products and services with much lower interest rates than traditional banks. While the average credit card APR is approximately 14%, most credit union members can get interest rates as low as 11%. The same often applies to auto and mortgage loans as well.

They Offer Higher Interest in Savings Programs

While they typically charge lower interest rates, the returns on savings and other investment products are typically higher. Even a difference of one or two percent can have a dramatic impact on your savings potential, putting your long-term goals within reach.

They Prioritize Customer Service

Because they are smaller and oriented toward serving their members, credit unions typically emphasize quality service. Staff members will strive to resolve issues with accounts, find solutions for members with imperfect credit, and provide more personalized attention than you would expect from a traditional for-profit bank.

As a fully member-owned financial institution, Spirit of America Federal Credit Union is dedicated to providing the best service possible to the Lincoln, NE, community. Their expansive list of services includes high-interest savings, vehicle loans, convenient checking accounts, and a broad selection of affordable loan products. Visit their website for more on their services or call (402) 467-1102 with any questions.