The Benefits of Credit Union Membership vs. Traditional Banks

Choosing the right financial institution can make a big difference when it comes to getting the best possible support, service and rates. If you’re trying to decide between a bank or a credit union, here are six benefits to joining a credit union as opposed to working with a traditional bank. 

Not For Profit  

Ultimately, a bank is a business. When a bank earns profits, those profits go to shareholders. A credit union, on the other hand, is a not-for-profit cooperative without shareholders. Every member of a credit union automatically owns an equal stake in the credit union, and credit union profits are returned to members in the form of better rates on financial products such as loans or savings accounts. The not-for-profit status of credit unions means they exist to serve members rather than to make money for outside shareholders, often resulting in a better experience and better terms for members.  

Personalized Service 

Where you choose to work with a credit union or a bank, you’ll get a full range of financial services. However, members often appreciate the higher level of personalized service that accompanies belonging to a credit union. Member satisfaction and financial wellbeing are prioritized by most credit unions, which exist to serve members rather than to make a profit. Credit unions often take a more personal and community-oriented approach, developing financial products and even educational services tailored to the specific needs of members.  

Community-focused Values 

A credit union is also a community. Members typically share a common bond, such as where they live, work or worship. Members are not accepted or denied based on income. This community-based system of values typically creates a more equitable level of inclusion and access to financial services, which credit union proponents say can strengthen the population at large. Credit unions tend to invest in local businesses and charitable initiatives as well, again helping to promote betterment for the local community.  

Safe and Protected  

The right credit union will keep your money safe and secure. Harvard FCU, for example, is a federally charted credit union which means all activities are organized under strict laws monitored and enforced by the National Credit Union Administration (NCUA). The NCUA, an agency of the U.S. Government, insures each member account up to $250,000. Deposits that exceed $250,000 are inured via the Massachusetts Credit Union Share Insurance Corporation (MSIC). 

Financial Education  

Besides supporting members with excellent financial services and customer support, credit unions often develop a range of financial education programs to enhance members’ financial literacy. With Harvard FCU, members can take advantage of free workshops, live webinars and video content, and a range of other educational programming. Members also get access to free financial counseling through GreenPath Financial Wellness, for further support with debt repayment, building a budget and more.