Credit unions offer small dividends, discounted loan rates and other benefits to their members.
Credit unions generally provide better customer service than banks do, though the ratings for smaller banks are nearly as good.
Credit unions also offer higher interest rates on deposits and lower rates on loans.
What is better credit union or bank?
The bottom line is that banks are for-profit institutions, while credit unions are non-profit. Credit unions typically brag better customer service and lower fees, but have higher interest rates. Both banks and credit unions provide similar services such as checking and savings accounts, loans and business accounts.
What are the benefits of using a credit union?
You’ll get better rates. A credit union will get you lower rates on loans and typically enable you to earn more on deposits than traditional banks. Because credit unions are nonprofits, they pass on surplus funds to customers in the form of higher interest rates on deposit accounts. You’ll pay lower fees.
Do credit unions offer better mortgage rates than banks?
Yes, credit unions can offer lower rates and fees. But larger banks and lenders can often do the same. Your best move is to shop around with several different lenders, of all types. You might find that the big national bank actually offers a better interest rate than the smaller local credit union.
Photo in the article by “President of Russia”