Why Choose A Credit Union?

You can expect a much more rewarding and meaningful experience as a credit union member. Because credit unions are member-owned and not-for-profit, they are more attuned to the needs of their members and are not driven by investors or their bottom line. Credit union members own a piece of the institution, and the revenue created through operations gets returned to members through better rates, technology enhancements, and more.

From the outside, banks look sophisticated and glamorous. There's all that hype, glossy advertising, and flashy logos. But those things don't matter much when it comes down to it. What counts is how each institution will look after your money and what kind of service you can expect. And while banks and credit unions offer nearly identical services and account choices, there are subtle differences.

Let's look at how having your checking account at a credit union differs from using a bank for the same purpose.

Account fees

To the unsuspecting consumer, big banks may not seem like money-hungry monsters. While they're happy to hold onto your money and might even be super-helpful in setting up your account, once it's up and running, expect to get hit with fees – just for having an account! And these fees don't come cheap. According to a MoneyRates survey, a bank checking account's average monthly maintenance fee is $12. That's nearly $150 coming out of consumers' pockets each year!

On the flip side, many large credit unions offer free checking or make it very easy to qualify to have the fee waived. This allows you to set up your account and keep it running without costing you a dime.

Credit unions tend to have less overhead than banks, so there is less reason for them to try squeezing more money out of each consumer. Why, then, would you fork over your hard-earned money to help keep a bank profitable when you can use it to help your net worth grow?

Overdraft fees

Sometimes, you may need to pay more attention to how much you have in your account, and you'll overspend. If you make this mistake with a checking account at a bank, though, it's more than just a face-palming moment of regret – get ready to cough up those overdraft fees!

These fees usually top $30; some banks penalize consumers for each transaction they make while their account is overdrawn.

Most credit unions understand that mistakes happen. They'll be more likely to forgive you for the occasional error. And, while some credit unions charge an overdraft fee, on average, these fees are much lower than what banks demand.

Why put yourself at risk of being penalized for an oversight?

Fewer strings attached

Banks will happily accept your money – so long as you've got enough of it. Most big banks won't allow you to open a checking account unless you have a minimum balance of several hundred dollars. In contrast, an incredible 76% of credit unions surveyed by a Bankrate Credit Union Checking Survey reported having no minimum balance requirements.

If you're looking for a place to park your money without jumping through an endless series of hoops, there's no question here!

Credit unions are government-regulated

Like banks, credit unions are regulated by a governing authority. This means a federally insured credit union, like a federally insured bank, offers federally insured accounts up to $250,000. This means your money is protected no matter which kind of institution you choose for your checking account.

For credit union members, though, it gets even better. Credit unions face more restrictions on their investments and loans than banks do. This means your credit union has to be super-careful with your money. They can't make any rash decisions or investments that might hurt you as a member.

Credit unions are all about doing what's best for the membership.

Superior service

When banking with family, you don't have to worry about overworked tellers, curt managers, or representatives indifferent to your individual needs.

When you stop by your credit union, you'll be greeted with friendly, familiar faces and representatives who care. They're always ready and willing to help you with whatever you need – whether it's a question about your checking account, some personal finance advice, or direction in a major life purchase.

They've got your back – always.

Why choose a credit union for your checking account? The answer is obvious. With lower fees, fewer strings attached, and better service, it's the best place to park your money!