Main Differences Between Banks and Credit Unions in Syracuse

Knowing Credit Unions in Syracuse and its Benefits

 

If you need money for buying a new car, house or for going on vacation, the first place where you should go to lend it is in banks. We can see that most banks nowadays are making huge profits while customers are paying hefty fees.

That is the main reason why most people tend to seek other financial institutions to help them reach the perfection and goals which will increase your possibility for loaning and saving money. Credit unions are such institutions and you should check more on them by visiting this Twitter page.

Credit unions will provide you the ability to get numerous financial products to increase your savings and maximize your income while paying lower fees than traditional banks.

However, do not think that we are telling you a fairy tale, because credit unions also come with certain disadvantages.

What Is a Credit Union?

When compared with traditional banks, we have to say that credit unions are similar to them in sense that both institutions will offer you financial products based on your preferences.

However, being a credit union member, similar as bank customer, will allow you to have access to savings and checking accounts, loan products, CDs and credit cards. At the same time, they can provide you different products and services.

We can say that unions differ from banks in two ways:

  • The most significant difference is that credit union is non-profit organization. Since it works without profit, they will be able to offer higher or lower interest rates based on the success of the union and available balance.
  • Another thing that you should remember that credit unions are member focused, which means that they are cooperative with members. Therefore, members own and operate it, which is completely different from bank stockholders that will own everything. You will give initial membership deposit to become the part of owners and you will have the say in the policy and politics.

Due to this particular ownership structure, in case that you wish to become a member you have to meet certain requirements depending on union goals and objectives. For instance, some credit unions will only accept employees from some industry sector and their family members.

At the same time, you can find credit union for teachers, which means that they will accept any teacher that works in specific area. On the other hand, some credit unions require members to live in specific areas as well.

We recommend you to click here so that you can find out how to calculate interest rates.

Benefits of a Credit Union

  • Higher Interest Rates – The first advantage you should remember is that you will gain the ability to save more money in a long run when compared with traditional banks. In case you want to save money, you will get high interest rates that are four and up to ten times the amount in interest so that you can save more money in a long run.
  • Lower Credit Card and Loan Rates – Credit unions will provide you the same financial products as regular banks, however, most people use local credit union for vehicle purchases because they get lower rates than choosing other forms of financing. Credit unions will also provide you lower rates when it comes to personal loans, mortgages and credit cards.
  • Lower Fees – Credit unions will come with fewer fees than banks, and the main reason for that is that they do not have to think about profit. Therefore, you will be able to use various additions such as electronic transactions, withdrawals and checking the balance free of charge. You can also get checking account that will feature low month servicing charge. Finally, you will be able to save hundreds of dollars on annual basis. Have in mind that they tend to charge overdraft and bounced check fees similar as traditional banks, but for a smaller rate.

You should check out this site: https://en.wikipedia.org/wiki/Interest_rate to learn more on interest rates that you should expect when applying for a loan.

Convenient Service – Since they are member-oriented, they will provide you much better customer service. They have small branches and fewer customers, which mean that you will be able to enjoy in personal and fast service when compared with traditional banks

Related posts