Did you know that consumers have ranked credit unions as Number 1 for service and customer satisfaction in the American Banker/Gallup poll every year since the poll began in 1983? That’s a worthy title, and one that shows that there truly is a difference between credit unions and banks. But most people don’t understand what this difference is, especially when from the outside it looks as if we are all offering the same basic products. However, every year consumers save $6.3 BILLION just by using a credit union instead of a bank!
The following Top 5 List shows the other major differences between credit unions versus banks:
You are more than a member
You may be nothing more than an account number at a bank with no say in what happens at the bank, but at your credit union, you are a member owner. What that means is that you have a say in how the credit union is run, and you have an equal vote in every election just like every other member.
Not-for-profit VS for-profit
Credit unions exist solely to serve their members, who are their only depositors. Any net earnings are returned to members through lower rates, better dividends and personal service. However, banks are commercial businesses who offer services to make a profit. Their earnings are returned only to their stockholders by way of dividends, which relate directly to the number of shares they own.
As part of a worldwide network, credit unions share many services and branches. This allows credit union members to manage their accounts and perform most face-to-face transactions at over 5,000 shared branches all across the United States (314 in Colorado alone!). The credit union co-op also provides members with over 30,000 FREE ATMs across the United States and that’s more than Chase, Wells Fargo, US Bank, Key Bank or 1stBank!
Insurance of funds
At your credit union your funds are insured up to $250,000 by the National Credit Union Association, a federal government agency. Similarly, funds in a bank are insured up to $250,000 by the FDIC, a government agency.
Credit Unions are for EVERYONE!
Credit Unions were founded on the idea of members, connected through their place of work, residence, or through family, joining together to lend to each other. Because of this, credit unions are more available to people of small means and those who traditionally have been under-served. So whether you are on a fixed income, a young single, or a growing family, we are here to serve you.