While the majority of people bank at regular banks, more and more consumers are trusting credit unions for loans and banking needs. In the last year, credit unions have added more than 2 million customers. So what is causing the massive exodus from big banks? The short answer is ever-increasing fees and poor customer service have convinced many consumers to make the switch.
So what are the pros and cons of banking at a credit union versus banking at a bank? We’ve explained some of the major benefits to banking at a credit union and how they stack up against banking at a big bank.
One major criticism of credit unions is that it’s not easy to access ATMs or banking branches when you’re away from home. However, programs like the CO-OP Shared Banking have addressed this issue and credit union members find it easier than ever to bank across the country.
Little to No Fees
Banks are notorious for charging fees for everything from maintenance to overdrafts. Most credit unions, about 70%, offer free checking, compared to 39% of banks.
Credit unions focus on their members. They often know clients by name, and make a concentrated effort to treat members as more than just numbers on paper.
Credit unions often offer competitive interest rates on their savings and checking accounts, while most banks no longer offer that option. Credit unions also offer competitive rates on mortgages and other loans.
If you’re interested in learning more about credit unions, you can visit us at secunm.org.