When you need a place to deposit your money, you have two primary options at your disposal: banks and credit unions. Both financial institutions offer checking and savings accounts, mortgages, and loans. However, they conduct business differently. The guide below explores both options so you can determine what’s right for you.
As publicly traded or privately owned institutions, banks are for-profit companies. They tend to charge more and higher fees than credit unions and have higher interest rates on loans.
These institutions make their services available to everyone, while unions have “field of membership” customer bases limited to geographic locations, companies, or schools. However, their wide customer base and numerous branches sometimes mean that clients have a harder time reaching a live person who can help with their problems.
Unlike banks, credit unions like Estacado FCU, are nonprofit organizations known for exceptional, personalized member service. Not only do team members make certain the needs and expectations of their customers are met, but they also offer superior interest rates on savings products and lower service fees, including overdraft and ATM withdrawal fees.
Credit unions also separate themselves from banks by not requiring high deposit amounts to open accounts or minimum balances to keep them open. Since this kind of financial institution is nonprofit, any earnings it makes are given to members via periodic dividend checks or through interest rates.
While credit unions may not be as widespread, most areas of the country feature them, and you can access money through shared No-Surcharge ATMs. They are also gaining ground in the mobile app department to provide customers with even better service.
Credit unions focus more on providing excellent service and less on making money. Many are involved with improving their local communities to benefit their members. Join a credit union and see the difference!
Estacado Federal Credit Union has served the counties of Lea, Gaines, Yoakum, and Cochran in New Mexico since 1953, providing multiple branches to increase customer convenience. Call the member-owned institution today at (575) 393-1596 to talk finances. Visit the union online for more information about their offerings. Get additional financial help on Facebook.