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Choosing a Bank or Credit Union

When it comes to protecting your money, you need to find the right bank or credit union to do the job! Holding your money in an account that is FDIC protected can mean that difference in losing everything and gaining everything. If you do not know which is the best decision to invest your money, let us enlighten you with some of our favorite things about banks and credit unions.

Ownership

The biggest difference between the two is that with a credit union, you actually “own” part of the company. A bank is just a place where you simply store your money and you are rewarded with interest money. The credit union is often preferred by people that like to have control over the decisions being made on their behalf. The members that invest with a credit union are often able to vote on certain things pertaining to investments, though this is usually for the customers that are investing a lot of money into the credit union. With a bank, you may have to pay to maintain an account, where credit unions usually give you some tax advantages to consider. However, not everyone can participate in a credit union. If you aren’t sure, you can always apply and find out but if not, shop around to find a good bank that can manage your money even if you have to pay a monthly fee.

Insured

This is something that you do need to check on as it is important to be completely sure that the company you are working with is legitimate and covered by the FDIC or NCUSIF. This will protect your money in case the bank or credit union fails. Having your money guaranteed will be able to protect you from a financial disaster.

Fees and Interest

Most banks and credit unions are pretty close with their fees and interest rates. Usually, a credit union will waive fees but the banks usually nail you for a checking account fee and other things. It is important to compare interest rates and look at all of the products that are being offered to know you are getting the best deal out there. The biggest advantage of a bank versus a credit union is that they usually have more products to offer.

Friendly Service

Out of everything, one thing you always want is someone friendly to talk to if you are in need of help. Both banks and credit unions will have customer service representatives that you can talk to about financial needs. Check out some bank reviews and credit union reviews in order to find the right financial institution for your needs!

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