When you think of checking accounts and debit cards, you’re likely to associate these products with a traditional bank. However, more than 115 million people in the United States choose to get these financial services from credit unions. There are many differences between credit unions and banks, and knowing these can help you decide which is right for your financial needs. See the below comparison for more information to help you make your decision.

Level of Participation

When you join a credit union, you also become a part-owner of the union. As a part-owner, you can express your opinion on what products and services the credit union should offer. You can also vote for board members. Bank customers, on the other hand, do not have a formal say on how their institutions operate. Those decisions are made by a group of shareholders.

Fees & Rates

Credit unions are known to have little to no fees on products and services compared to banks. Many credit unions belong to the CO-OP Shared Branching Network, which provides ATM access nationwide to members, minus the surcharges. Interest rates tend to also be lower at credit unions on mortgage, car and personal loans, compared to banks.

Eligibility

Credit unions trace their roots back to a time when immigrants, poor people, and other disenfranchised groups were not able to become bank customers. Today, membership is open to everyone based on a wide range of factors, and you’re most likely eligible to join a credit union near where you live. For instance, you can become a member according to your occupation, your location, or if someone in your family is a current member. Banks don’t have eligibility requirements for individuals to become customers.

If a credit union sounds like the right fit for your financial needs, sign up to become a member at Hawaii County Employees Federal Credit Union, which has served the Big Island for more than 80 years. The financial institution offers a wide range of products and services that also appeal to young people such as mobile and online banking as well as Kasasa® rewards on checking accounts. To learn more about becoming a member, visit the website or call (808) 935-2969.