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July 6, 2016 • By Lisa Eddy

Credit Unions vs. Banks: Busting Myths about the Credit Union World

Myth One: Credit Unions Give Fewer Returns than Big Banks

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In reality, credit unions offer higher interest rates on a variety of deposit accounts which an individual can open, such as savings, checking, and money market accounts. Many credit unions also have lower fees, offering membership fees ranging from about $5-$25. WalletHub’s Banking Landscape Report concludes that credit unions have higher rates of return on savings accounts compared to those of banks. In fact, many credit unions offer checks, withdrawals, and electronic transactions for free, and have checking accounts with no minimum fees, saving members hundreds of dollars a year.

SafeAmerica offers 2.00% APY* on its Kasasa Cash Checking accounts, up to 0.35% APY* on its Money Market Accounts, up to 2.02% APY* on its Certificate and Individual Retirement accounts, and 9.99% APY* on its Youth Certificate accounts. Learn more.

Myth Two: Credit Unions are For Profit Institutions

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Credit unions are, by definition, nonprofit-making money cooperatives whose members can borrow from pooled deposits at low interest rates. Simply put, credit unions don’t function to make a profit from their members, and instead prioritize member needs and experience. Whatever profits are made by a credit union are returned back to the members in the form of lower rates and fees. In contrast, banks are for profit institutions, and a large portion of their profit is returned only to stockholders.

SafeAmerica is your financial partner. We are owned and operated by our members, and use our earnings to give you higher dividends, lower loan rates, and reduced transactional fees. Learn more about our mission to help you here.

Myth Three: Credit Unions are Run by Stockholders

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Credit unions are member owned, meaning that any member of a credit union has a direct input in the decision-making process of the credit union. Member input takes form in a one member, one-vote system, and directors at credit unions are usually unpaid volunteers who are elected by vote.

SafeAmerica believes that as our member, you have a right to be involved in the decisions that affect your financial life. See who’s on our Leadership Team.

Myth Four: It’s Difficult to Become a Member of a Credit Union

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Legally, credit unions must restrict membership to certain groups based on different qualifications. An individual can become a member if they live, work, worship, or attend school in the surrounding area of a credit union, if they work in certain companies which are affiliated with a credit union, or if they have a relative who is a member of the credit union they are applying for. Though there are requirements based upon which one can become a member, they are broad categories which an individual can easily qualify within.

SafeAmerica makes it simple to apply for membership. Join our financial family today! If you do not qualify for membership based on location, workplace, or family affiliation, fear not! By simply selecting to join the Financial Fitness Association on our application, you can still apply for membership and enjoy all the benefits SafeAmerica Credit Union has to offer!

Myth Five: Credit Unions Dismiss Members with Blemished Records

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Credit unions tend to be the more forgiving institutions in the money management world. Banks process applications in large, bulk amounts, so they place restrictions on different aspects of an application such as income or credit scores. However, credit unions are more member-focused and tend to look at an application holistically and can help applicants with financial difficulties. Credit unions also take into account a member’s history within the institution and can make exceptions for members who have been in good standing with them if there are roadblocks in credit or loan applications.

Not only is SafeAmerica an understanding institution, but we recognize every member’s endeavor for financial literacy. We offer a variety of seminars, educational videos, and online courses to our members, all free of charge.

Myth Six: Credit Unions Don’t Have as Many ATMs as Big Banks

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Credit unions tend to be smaller than banks, creating a myth that banks give easier access to services such as ATMs. However, many credit unions are part of the CO-OP Shared Branch, an ATM and branch-sharing network, through which the member of one credit union can use the ATM of any other credit union free of charge and can go into another credit union’s branch location and make deposits, withdrawals, transfers, and account inquiries. This means that with CO-OP Shared Branch there are over 5,000 shared branch locations and over 30,000 ATM’s nationwide for credit union members to access, making them just as convenient if not more than nationwide banks.

As a member of the CO-OP, SafeAmerica works hard to make sure our members have easy access to all the benefits of membership we have to offer. We offer a vast amount of convenient ATM locations, click here to find one near you today! We go a step beyond offering 30,000+ CO-OP locations and also provide nationwide ATM refunds of up to $25 per month for members with a Kasasa checking account! Simply open any Kasasa account with us and enjoy these benefits and more!

So, the choice is simple. Credit Unions ARE better than banks, and SafeAmerica is one of the best. Try us and you will see how we make the credit union difference meaningful for you through better rates on your deposits and loans and better access to your money anytime, anywhere.

Citations

Colley, Angela. “Credit Unions vs. Banks – Differences, Pros & Cons.”
Bernardo, Richie. “Credit Union vs. Bank: What‘s the Difference?”
Comoreanu, Alina. “2016 Banking Landscape Report.”

Next Post: Checking In On Your Checkings: How We Can Get You to the Bahamas »

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