Why join a Credit Union?

You may be wondering what the difference is between your local credit union and your local bank -- or perhaps you’re not wondering and think they’re pretty much the same. You may be surprised to find out that there are big differences between credit unions and banks...including the way they operate and who they work for. Banks are owned by investors and answer to them. When you do business at your local credit union, the institution is owned by the members of the credit union, and if you're a member, YOU'RE a part owner. But that's just the first of many differences...

The Owners

First and foremost, when you’re looking at which institution to bank at, you should take a look at who owns the establishment. When you bank at your local bank, the institution is owned by investors and the bank works to make those investors money. When you bank at your local credit union, the institution is owned by the members of the credit union and if you’re a member the institution is owned, in part, by you. Therefore, the credit union is, in essence, working for you.

Where Do The Profits Go?

Another big difference between credit unions and banks is where the profits go. When you’re doing business with a bank, the investors of that bank are reaping the profits of the institution. However, credit unions are non-profit entities. When you’re doing business with a credit union the profits of that credit union are being returned to the members of the credit union in the form of lower loan interest rates and higher dividends.

Are My Accounts Insured?

Many people are leery of putting their funds in the hands of a credit union because they believe the credit union isn’t FDIC insured. Credit Unions in Wisconsin are insured by the National Credit Union Administration. The end result is the same, though, your accounts are insured at least to $250,000. by the United States Government.

Personalized Service

While this isn’t the instance in all cases, people who are members of credit unions receive more personalized service than those who are members of banks. Because credit unions tend to be smaller and cater to a select group of people, there is more personalization between the staff and the members.

While banking at a credit union isn’t for everyone, it’s definitely something you should consider looking into. See what service and opportunities your local credit union can offer you. But don't just take our word for it, check out these outside links to financial experts who say that Credit Unions are very often a better deal for you the consumer than the local bank.

bankRate.com -- own your own bank!

The Motley Fool -- are Credit Unions Foolish?

MSN.com money -- Ditch the Bank!