In most cases, people around the world had associated banking institutions with stability, trustworthiness, and longevity in the financial sector. But recently with the collapse, many financial institutions, and financial markets, people around the globe have now started asking many questions on whether the banking institutions are the best avenues to save or transfer their money.
One spokesman of federal credit union houston explained that sometimes credit unions are mistaken for a sort of a one-day pay lender that is requiring you to be part and parcel of a union. So, if you are considering to join a credit union instead of choosing to join a bank, there are some few points to help you make a sound decision. (This post guides you through on how you will benefit from joining a credit union.)
In most cases, credit unions are considered to be financial cooperatives. They are not termed as financial institutions. The goal of a credit union is not to make a lot of cash from you. Its objective is to express how people can come together to form a jointly owned and controlled enterprise. Therefore, a credit union is a cooperative and not a corporation. In joining a credit union, you will have shares and there you qualify to own the enterprise partially.
If you join a credit union, you will not lose anything. The major requirement for you to join a credit union is that you must be living in that area. You will lose nothing because a credit union offers all the services and products which are offered by banking institutions.
Another benefit to note is that you will enjoy democracy. One of the most important features of a credit union is that it is owned and controlled by members. The management makes decisions that are advantageous to members.
Credit unions offer the best rates as compared to other banking financial institutions. Being jointly owned by members allows its rate of incomes on savings investment accounts to be reasonable. This is only possible at credit unions but not banking institutions.
Most of the credit unions will offer you some other products such as advisory services on finance and health insurance covers. One of the goals of credit unions is financial education and community enrichment with some of them offering free financial lessons to its members and the community at large.
In conclusion, if you are tired with long queues, unresponsive and poor customer service then a credit union is the best institution to save your money. It offers the best rates of return, friendly customer service, and they are community-based. Do a good comparison of the modern online banks and traditional banking and come up with a credit union that offers excellent rates for the product and service you need. You become a member of a credit union the moment you open an account. Its performance is excellent to please its shareholders or members rather than its stockholders. They focus on creating customer service rather than making profits.