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If you are doing a credit union search to find a new financial institution, there are a number of things to look for.
Credit unions have some advantages over banks because of their structure and function. Credit unions are not for profit institutions, the primary factor that distinguishes them from banks. The members of the credit union, or the customers, become the shareholders. Rather than dividends, the members get benefits from being members. Many times, credit unions offer free of charge services for which banks charge.
Some credit unions are better than others, so look for some of these features as you do your credit union search.
1. Interest on All Accounts
One of the features you find at many credit unions is that each account is interest-bearing. Look for credit unions that offer interest on any balance and on any account.
2. Low Loan Rates
Many credit unions pass benefits to their members in the form of lower interest rates on the loans they offer. For example, car loans are a very popular feature of credit unions. Their car loans can be 2 to 6 percentage points lower than similar loans from banks or dealers because of the low overhead on credit union loans. You can likely get a lower payment and a shorter term on a car loan from a credit union rather than a bank.
3. Free Online and Phone Banking
Most credit unions allow you to access all accounts online, complete online transactions, and hook your accounts to home finance software for no fee. Many credit unions also offer free online bill pay, a service you will nearly always pay for at a bank or through a credit card.
For those without online access or for those moments when you cannot get to a computer, look for a credit union that has phone access to their automated teller system.
4. Free Overdraft
Look for a credit union that offers a free overdraft service. Many will give you a credit line of $500 to $1,000 that will automatically cover any overdrafts on any of your accounts without charging you a fee.
5. Lower Penalty Fees
If you have ever had a returned check fee at a bank, then you know that the fees can add up quickly. Credit unions generally have lower fees than banks for such items as returned checks, stop payments and over limits. Often credit unions are lenient on these fees and will forgive them if you have a good record of payments and keeping a balance.
In your credit union search, be sure to ask current customers about the customer service aspects of the credit union you are considering.
6. Free Services
Many credit unions offer free products and services. You may be be able to get free checks and make free wire transfers. Many credit unions also charge no monthly fees on any accounts and require no minimum balance or just a very small balance on accounts.
Credit unions have some advantages over banks because of their structure and function. Credit unions are not for profit institutions, the primary factor that distinguishes them from banks. The members of the credit union, or the customers, become the shareholders. Rather than dividends, the members get benefits from being members. Many times, credit unions offer free of charge services for which banks charge.
Some credit unions are better than others, so look for some of these features as you do your credit union search.
1. Interest on All Accounts
One of the features you find at many credit unions is that each account is interest-bearing. Look for credit unions that offer interest on any balance and on any account.
2. Low Loan Rates
Many credit unions pass benefits to their members in the form of lower interest rates on the loans they offer. For example, car loans are a very popular feature of credit unions. Their car loans can be 2 to 6 percentage points lower than similar loans from banks or dealers because of the low overhead on credit union loans. You can likely get a lower payment and a shorter term on a car loan from a credit union rather than a bank.
3. Free Online and Phone Banking
Most credit unions allow you to access all accounts online, complete online transactions, and hook your accounts to home finance software for no fee. Many credit unions also offer free online bill pay, a service you will nearly always pay for at a bank or through a credit card.
For those without online access or for those moments when you cannot get to a computer, look for a credit union that has phone access to their automated teller system.
4. Free Overdraft
Look for a credit union that offers a free overdraft service. Many will give you a credit line of $500 to $1,000 that will automatically cover any overdrafts on any of your accounts without charging you a fee.
5. Lower Penalty Fees
If you have ever had a returned check fee at a bank, then you know that the fees can add up quickly. Credit unions generally have lower fees than banks for such items as returned checks, stop payments and over limits. Often credit unions are lenient on these fees and will forgive them if you have a good record of payments and keeping a balance.
In your credit union search, be sure to ask current customers about the customer service aspects of the credit union you are considering.
6. Free Services
Many credit unions offer free products and services. You may be be able to get free checks and make free wire transfers. Many credit unions also charge no monthly fees on any accounts and require no minimum balance or just a very small balance on accounts.
