When it comes to money, everyone wants to find the safest place to keep track of it. The most common place people put there money is in the different banks located all across the country. What many people don’t recognize is that there are other places to store your money other than banks.
A credit union is a non profit that is similar to a bank but is still different. Members of a credit union are also the owners of the credit union, but must meet certain requirements. There are benefits to putting your money in a credit union such as it is easier to get a loan, the savings rates are better, and reduced fees.
The difference between a credit union and a bank is that when you deposit your money into a credit union you instantly become an owner of the institution as well as a customer whereas in a bank you are only a customer. A Credit union’s goal is to help the members so instead of finding ways to use money to make profit for their establishment they use it by giving benefits such as lowering their interest rates on loan products.
The advantages of using a credit union is that it revolves around the customer/owner. The decision maker knows the best way to handle the customer’s loans since a specific credit union serves one single community. The downside of credit unions is that there are certain requirements in order to become a member of one.