Joining a Credit Union Instead of a Bank

These days, amidst the global financial disarray, making deposits in local banks or other saving institutions can be quite risky; the rising tide of bank failures across the country has left the industry in shambles. The current economic climate and the general concern about the ability of banks to insure deposits adds to the consumers’ anxiety over where to deposit their hard earned money, and what to do with loans and credit cards. If looking for comfort and safety, you need to consider doing business with one of these unions.

There are thousands of them available nationwide with federal or state charter. Although the commercial banks cater to larger corporate accounts and depositors rather than an average customer, the credit unions are cooperatives organized to meet the requirements and needs of their customers; their motto is “not for profit, not for charity, but for service. This motto resonates loudly nowadays, especially since their great rival, the banks, try to enhance their revenues imposing higher interest rates, fees and penalties. If you fall behind the minimum balance, delay a payment or bounce checks, the penalty will be exorbitant.

These financial institutions offer the same service found in other types of lenders such as direct deposits, bill payments, ATMs, credit cards and loans, insurance policies. In the past car loans were the basic products that attracted members, but this belongs to the past. Home improvement, personal emergencies, education and vacation are just some of the products and services provided by most of the unions today. The services and offerings are rising, with increasing number of them offering certificates of deposit, money orders and more products. These institutions are expected to keep growing, especially since trust towards banks keeps falling.

Credit unions are ready to serve people, while banks pull out of the community when the profit is not big enough. They are listed in the yellow pages, online, at the chamber of commerce, at lists found at workplaces. You can contact the union league in your state and check whether you needs can be met. If you are eligible to join you will simply become a member, making a deposit which represents your share.