Credit Unions: Membership Has Its Benefits

Posted by Credit Union of Texas on September 29th, 2017

If it’s time to establish a deposit account for personal or household needs, there are some distinct reasons why credit union membership makes sense if the option is available. While it’s true that credit unions offer many of the same services and financial products traditional banks afford customers, membership in a credit union comes with perks that go beyond the expected.

Credit unions are not banks. They are not-for-profit, financial cooperatives that are technically owned by their members. Since they are not beholden to shareholders and driven by the need to earn profits at all costs, they take a different approach to helping people meet their personal financial goals. When a person opens a deposit account at a credit union, that person becomes a member and gains access to a slate of benefits traditional banks are unable to provide. Some of the benefits of membership include:

• Access to a higher level of service – The primary focus of a bank is on pleasing its shareholder by earning money. A credit union’s sole mission is to serve members no matter how much or little money they have in their accounts.
• More generous account terms –Banking institutions often have high minimum deposit requirements for opening checking or savings accounts. Credit unions tend to have lower minimum deposit amounts and are likely to offer reduced service fees. They are able to do so because they exist to serve member needs.
• Favorable credit terms – Credit union members have access to loans and credit cards, along with investment products, much like bank customers enjoy. The difference, however, lies in the fact credit unions are able to offer more favorable terms for members. Lower interest rates, for example, are likely on credit card accounts and loans. Moe flexible lending terms may also be available on loans for credit union members. In addition, investment products made available to credit union members typically have a higher yield, which helps members grow their money faster.

Credit union membership provides benefits that traditional banks simply cannot offer. When membership is available, this is a sound option for meeting personal financial needs.

About Author

Serving our community since 1931, CUTX is owned by its members and operated in accordance with the laws governing credit unions in the State of Texas. As a member, your deposits are federally insured by the National Credit Union Administration, a United States government agency.