Credit unions are financial institutions with a unique business model. Whereas traditional banks are owned by stockholders and other third parties, unions are owned by the members themselves. This arrangement allows for some exclusive benefits for members, including the following.

Why Choose a Credit Union?

1. A Focus on Members First

Credit unions do not seek to make a profit. Being member-owned and -run means the decisions made will always benefit members first, instead of other parties, such as stockholders. This sometimes results in lower fees than other institutions. For instance, while traditional banks may charge high amounts for overdrafts, you can expect to pay much less through a credit union. Many also offer low transfer fees and little to no ATM fees.

2. Personalized Services

Many people are drawn to these financial institutions for their friendliness and personal attention. Since these institutions are smaller, they’re managed in a way that allows for closer interactions with their members to create long-lasting relationships.

You can also expect personalized credit assistance with one-on-one guidance on financial matters, such as credit scores. Some specialize in serving a group of people—like military members or local college students—to provide further customized service.

3. A Better Variety of Offerings

With a personalized touch comes a broader range of services. Members can enjoy perks like free education for money management. Most unions are focused on community outreach and enrichment and may also host or participate in local fundraisers. Plus, some extend memberships to families of members as an added perk.

4. Competitive Interest Rates

Members are often able to enjoy lower rates on mortgages, car loans, and student loans. Sometimes, further discounts are available through features such as automatic payments. Securing low-interest rates on loans and credit cards can help you avoid debt or pay off debt quicker. Moreover, for large purchases, lower interest rates can result in money saved over time. 

If you’re looking to join a credit union in the Lincoln, NE, area, turn to Spirit of America Federal Credit Union. Insured by the National Credit Union Administration (NCUA), this trusted institution offers low-interest loans and exclusive member benefits, such as checking accounts with no monthly fees. Find out more about their services online. Call (402) 467-1102 to ask a team member questions.