The Top 10 Benefits of Joining a Credit Union for Higher Returns

Joining a credit union can be one of your smartest financial moves. As member-owned, not-for-profit cooperatives, credit unions aim to serve their members with better rates and fees than large commercial banks. This detailed guide explores the reasons for joining a credit union, the process of becoming a member, the valuable services you can access, and more.

Understanding What a Credit Union Is

Unlike profit-driven banks, credit unions operate to benefit their members. They return earnings to members through dividends, lower interest rates on loans, expanded services, and other member perks.

Many credit unions have recently adopted open charters, expanding membership eligibility beyond those with a joint employer, industry, or association. This makes joining a convenient option for almost anyone looking to maximize savings and pay less to borrow.

The Top 10 Benefits of Credit Union Membership

Here are several compelling reasons to join a credit union over using a traditional bank:

1. Higher Interest Rates on Savings Accounts
Credit unions pay 0.50% higher APY on regular share savings accounts than big banks’ national average rates. Over years of saving, those extra interest payments add up. Credit unions can afford to pay more, thanks to their non-profit status.

2. Lower Interest Rates on Loans
Whether you need a mortgage, auto loan, or personal loan, borrowing from a credit union costs less. Interest rates on loans of all types are, on average, about 1% lower than rates of big banks. Given long-term interest costs, joining a credit union will put much money back into your pocket.

3. Fewer Nickel-and-Diming Fees
Big banks charge an average of 11 fees, many sneaky and buried in fine print. Credit unions have fewer fees if any at all. Credit unions are motivated to serve members, not drive profits through excessive fees. This helps you hang onto more of your hard-earned money.

4. Better Customer Service
At a credit union, members get attentive, personalized service and one-on-one financial advice. You are not just a number as you often feel with massive national banks. Credit unions invest in understanding your complete financial picture.

5. Giving Back to The Community
Credit unions actively give back to communities through financial literacy programs in schools and investments in local projects. If you want your financial institution to share your values, credit unions put the community first.

6. Nationwide ATM Access
Though credit unions are smaller than national banks, you still get fee-free access to 30,000+ ATMs through the CO-OP Shared Branching network. This nationwide ATM access rivals what large banks provide.

7. Shared Branching Services
In addition to ATMs, many credit union locations are linked via shared branching services. This allows you to bank in person at thousands of partner credit union branches worldwide – just like visiting your home branch.

8. Youth Accounts, Financial Literacy Initiatives
Many credit unions offer specialized youth accounts to help kids learn about money from an early age through savings incentives and financial literacy programs. Investing in the next generation is vital to credit unions.

9. Mobile Banking, Shared Apps
Like large banks, credit unions offer robust online and mobile apps for banking on the go. In fact, many credit unions use the same banking platforms, like CO-OP Financial Services, providing a seamless experience.

10. Investing and Insurance Services
Most credit unions provide access to investment accounts, like IRAs and mutual funds, and insurance services that members need—often at better rates and with knowledgeable staff ready to help you understand confusing products.

How to Become a Member

If you want to unlock all the advantages of credit union membership, here is the simple process to join:

Determine Eligibility: Verify you meet the credit union’s field of membership criteria based on where you live, work, or worship. Some credit unions now have open eligibility.

Open a Share Savings Account: You will need a share savings account and maintain a small minimum balance, usually $5 to $25. This represents your ownership stake in the credit union.

Fill Out Membership Application: Apply to become a member, which is generally an immediate approval process once eligibility is confirmed.

Access Services: As a member-owner, you can access all the credit union’s banking services and preferred rates. To maximize convenience, consider opening a checking or money market checking account.

Services Offered

As a member, you will have access to everything from savings accounts to loans to investing:

• Share Savings Accounts
• Share Draft or Checking Accounts.
• Money Market Checking Accounts.
• Share Certificates or CDs
• Mortgages, Auto, Personal Loans
• HELOCs, Lines of Credit
• Credit Cards
• Youth Accounts
• Financial Planning Assistance
• Retirement Accounts Like IRAs
• Investment Accounts
• Insurance Like Home, Auto, Health

Credit unions also offer mobile apps, online account access, nationwide ATM networks, shared branching, and other convenient services to provide full-service banking.

Conclusion

Joining a credit union can benefit individuals, families, and communities seeking better returns on savings, lower costs on borrowing, and working with a not-for-profit cooperative that puts people first. The credit union structure creates win-win advantages for members not found at for-profit banks.

With open membership policies at many credit unions, it is convenient for almost anyone to join. Opening a shared savings account and applying for membership takes just minutes. Then, you unlock all the benefits of access to affordable loans, high-yield deposit accounts, fewer fees, personalized service, youth financial literacy programs, and investment in local communities. If you want a financial institution that shares your values, find a community credit union to call home today.