Banks and credit unions are institutes that offer financial products to their clients. Bank accounts are more popular among people as compared to credit union accounts. Banks, as well as credit unions, assist one in all of his banking needs.
People often consider credit union account vs bank account to have more benefits. It is quite challenging to choose one of these, but their differences help one avail the better option.
Banks Vs. Credit Unions:
A credit union differs from a bank in different ways. For instance, the main point differentiating a bank from a credit union is that banks work for profits. On the other hand, credit unions are non-profit organizations.
As credit unions do not work for profit, they offer more interest rates on saving accounts. However, they have a lower interest rate for credit cards.
Another major difference between banks and credit unions is that credit unions emphasize their members’ needs. To sum up, we can say that credit unions are cooperative organizations that offer ownership to their members.
On the other hand, banks have stakeholders as their owners, which makes them work for a profit.
Banks offer their customers a lot of plus points. Some of these include the following:
· Latest Technology:
Banks employ the latest technologies to offer relief to their customers. By using the latest technology, banks have better tools and online applications. The websites of banks have certain impressive features which play a key role in facilitating different customers.
All of the businesses these days incorporate the latest technology to win over the competition. Following this trend, banks also employ the latest technology. For instance, they have mobile phone applications that aid customers by offering mobile banking.
This proves to be a great benefit for people with busy lives. The use of the latest technology by banks helps people in saving their time and energy. Thus, we can say that these organizations are best for different banking needs.
· Huge Network of ATM’s:
Banks have larger networks of automatic teller machines. ATMs are a great revolution in the banking industry. Banks facilitating their users with ATMs offer easy and convenient access to people in different areas.
It is essential to have complete information regarding the fees of the ATM. Those ATMs that fall in your area or locality do not cost you a fee. However, using those branches of ATMs that do not cover your locality may charge you a bit more.
Banks offer many conveniences to people, but their top convenience is they are present at very short distances. One can easily find a bank in his locality and can benefit from it. Banks are much convenient in offering services in a short time.
Credit union accounts offer a lot of advantages. Some of these advantages are:
· Simple and Easy Processing:
However, credit unions have fewer complications as compared to banks. They allow their customers to avail of different services through simple and easy-to-follow rules and regulations. On the other hand, banks have strict terms and conditions for different services.
Credit unions offer their customers free checking for their accounts. This allows them to have complete information regarding all of their previous activities. For instance, one can know about his debit card purchase and deposit. He can also withdraw cash without any fees when using a credit union account.
This also results in offering one complete protection and safety against any scam or theft activity.
· Flexible Services:
Credit unions offer their customers more flexibility as compared to banks. As banks focus on their profit and credit unions emphasize customer-focused banking, one must consider having a credit union account rather than a bank account.
Banks decline your applications if you do not meet their requirements. While credit unions want to work with more clients, so you do not hear ‘NO’ from credit unions. They accept customers with troubled financial pasts and help them improve them through various effective ways.
If you have a credit history with different issues and lack a large account, you won’t make it to a bank account. It is because of these inconveniences and restrictions of banks which give an extra leg up to the credit union accounts.
Credit unions charge very little fees for different services as compared to banks. For instance, one can have numerous free-of-charge services through credit unions. These services include free checks, electronic transactions, and cash withdrawals.
Most credit unions also offer to check accounts without demanding any balance. These accounts are free of charge and help one save a huge amount of money monthly. It is not like credit unions do not charge for their services, but they typically charge less as compared to traditional banking systems.
For instance, a credit union may charge their customers for bounced checks, but these are minimum service charges. People also use credit union accounts for purchasing cars. This helps them in having cars at very low-interest rates.
The interest rates for buying a car with union credit are less as compared to the rates offered by different car dealers. It is even less as compared to that offered by banks. Thus, one must have a credit union account to save a great deal of money for buying his vehicle.
One can also take benefit from credit union accounts as they charge very little for credit cards, mortgages, and personal loans. Credit unions are also known for offering more bang for your buck as compared to banks because they offer their customers very high-interest rates.
All of this results in adding more to the cost-effectiveness of a credit union account.
To sum up the discussion of credit union account vs. bank account, we can say that credit union accounts are more beneficial because of their fast, flexible, and cost-effective services.
Luke Auston is a financer and has been associated with this industry for a long time. He clearly explains the credit union account vs bank account difference in this piece of writing.