Credit unions tend to offer better rates on deposit accounts, lower rates on loans and credit cards, and lower fees in general than traditional banks. They're run by their members, they often have the same federal insurance protections as banks, and in many cases they offer a variety of perks and free educational resources.

Most people previously associated banks with trustworthiness, longevity, and stability in the financial world—at least until recently. With the shake-down of the financial markets and the collapse of many financial institutions, it's not unreasonable to question whether banks are the best way to store, transfer, and save money.

Credit Union Benefits Overview

Credit unions are free to make decisions to benefit their members rather than seeking to please stockholders, who may have different interests than members. As a result, credit unions can offer lower rates on loans, credit cards, and other products, higher savings rates, and lower fees. Members also commonly benefit from insurance on funds up to $250,000, financial education tools, and significant community involvement.

Browse our picks for the best credit unions to get 𒐪an idea of the produ༺cts and services offered compared to traditional banks.

1. Better Rates on Savings Products

Credit unions strive to offer great rates on deposit accounts and often beat interest rates from banks. Howeve🀅r, you should shop around for the best deposit accounts currently available to compare returns:🦩

• Best high-yield savings account rates
• 澳洲幸运5开奖号码历史查询:Best CD account rates
• 澳洲幸运5开奖号码历史查询:Best money market account rates

2. Lower Rates on Borrowing Products

In general, credit unions charge lower interest rates than banks on a wide variety of products, including:

• Credit cards
• 澳洲幸运5开奖号码历史查询:Fixed-rate mortgages
• Adjustable-rate mortgages
  
• Home equity loans and HELOCs
• Used car loans
• New car loans
• Personal loans
  

While you should always shop around and compare ra𒉰tes, starting your loan search at a local credit union may be a real benefit.

3. Lower Fees

Credit unions charge lower fees than other financial institutions, on average. These may include lower or nonexistent fees for account maintenance or fee refunds for banking activities such as out-of-network ATཧM withdrawals.

This doesn't mean you won't be charged fees for some services, however, such as wire transfers or 澳洲幸运5开奖号码历史查询:overdrafts.

4. Member-Owned Financial Services

Credit unions often consider themselves "澳洲幸运5开奖号码历史查询:financial cooperatives" rather than f🔥inancial institutions. So perhaps the most outstanding feature of cཧredit unions compared to banks is that they are member-owned and member-run, with opportunities to vote for a volunteer board of directors elected by members. This board helps run the credit union.

5. Up to $250,000 Insured

Up to $250,000 of your funds at a federally-insured credit union are insured by the National Credit Union Share Insurance Fund, as managed by the 澳洲幸运5开奖号码历史查询:Nationa🎀l Credit Union Administration (NCUA). The $250,000 standard insurance amount is per owner, per insured credit union, for each account ownership category. That includes deposit accounts like checking, savings, CD, and money market accounts.

6. Perks and Free Education

Some credit unions offer products such as individual 澳洲幸运5开奖号码历史查询:health insurance and financial advisory services. Most credit unions focus on community enrichment and financial education, with many offering free classes or other educational services to the co🍒mmunity, including debt and budget counseling, in-school 🐲credit union branches, and first-time homebuyer programs.

Frequently Asked Questions (FAQs)

The Bottom Line

If you're frustrated with long lines and unresponsive customer service, a credit union might be the best place to put your money. It's tough to beat a friendly, community-focused financial institution offering lower fees and better interest rates. Compare the account types you need with those offered by traditional and online banks, and make sure the credit union you are considering offers the best terms for the service you need.