You are about to get a checking or savings account, but you also wonder which financial institution is the best fit for you. Credit unions and banks offer very similar services; a bank is usually the go-to financial institution. Still, with the increasing bank rates and other charges, you might want to think of an alternative: credit unions. There are several credit unions in Colorado you can choose from if you do decide on that option. Your financial needs will be what helps you choose right. Before you make a final decision, here are reasons you should consider
Advantages of Credit Union
● Lower Charges:
Banks make a profit for their shareholders and investors by charging higher fees. Credit unions are not for profit, so they do not have to charge as much as banks. They offer a free or low fee minimum balance for checking accounts. Unlike banks, they charge lower interest rates on loans, mortgages, and credit cards.
● Higher Interest
Higher rates are paid on deposits and savings by credit unions than banks. This is because they do not pay cooperate tax, and the profit generated from the institution is paid to the members of the credit union in the form of higher interest rates that only a few traditional banks, if any, can rival.
● Fewer Fees Required:
Credit unions require members to pay fewer fees than banks. Most of the fees required in banks, such as monthly account servicing fees, card alerts, and withdrawals, do not apply to credit unions. Even when they charge fees, it is usually lower than that of banks.
● Ease of Transaction
Credit unions provide simpler services. Setting up a checking or savings account with credit unions in Colorado is easy to set up and manage. They require fewer requirements and provide a free checking account, free mobile transactions, and alerts, among others. However, credit unions come with instructions if not met, which may reduce your interest.
● Personalized Customer Services
It’s not uncommon to walk into a credit union and meet a friendly face that knows and attends to you. Credit unions are known for personal and prompt services; this is due largely to the fact that their branches are small.
Credit unions in Colorado even top local banks when it comes to customer satisfaction.
Conclusion
Credit unions are not without their drawbacks. They do not offer as many financial products as banks. If you prefer to transact business physically, the limited number of branches they have may pose a problem for you. One thing is clear; credit unions are improving their products and services to meet the needs of their members.
A credit union may not be best for you if you are interested in exploring other financial products, or you’d need easily accessible banking services. If you are interested in a place where you can perform basic banking operations at a cheaper rate, a credit union is the best for you.
