Credit unions and banks both offer a safe and secure place to deposit your funds, manage checking and savings accounts, obtain loans, and conveniently access your money. However, there are some important differences that distinguish credit unions from banks, and understanding these variations will ensure you find the right services for your needs. Below is an overview of each type and how to choose the best option.

Credit Unions

A credit union is a nonprofit institution that typically offers lower fees and finance charges than a bank. Credit unions are not large corporate organizations, so they have the added benefit of being able to provide more personalized customer service, focusing on getting to know their clients as individuals with unique banking needs. They usually operate within a defined field of membership, meaning you need to meet specific credentials for joining the credit union, such as living within a particular geographic area or working for a certain company. This is the best option for those looking for superior customer service, low transaction fees, and discounted loan rates.

Banks

Banks operate at a profit, which often translates to higher fees and banking charges. Because they are not restricted to specific service areas or clientele, banks can have multiple locations across the country, which is convenient for those who travel frequently or those who live part of the year in another city or state. While both banks and credit unions embrace technology, banks tend to be faster at adopting online- and app-based services. Banks are ideal for people who need the convenience of many branch locations or do the majority of their banking via technology.

When you need a credit union in the Totowa, NJ, area, trust North Jersey Federal Credit Union. For over 80 years, this Passaic County-based institution has been providing a wide range of financial services, including checking and savings accounts, online banking, and home and car loans. They are proud to offer lower rates and higher returns, and they will give you the personalized attention you deserve. Call (973) 785-9200 or visit them online for a full list of services.