Disclosure: This post is sponsored by Make Your Money Matter, in association with PSCU, though all views expressed are my own.
I was about 7 years old when I was first introduced to Credit Unions, and tried to understand the difference between a credit union and a bank. I didn’t quite understand it then, but as I grew older, I was noticing a difference between my accounts at a credit union compared to a regular bank.
Now it’s time to share that information with you as to why choosing a Credit Union is a great option:
Credit Unions vs. Banks
Credit unions are not-for-profit cooperatives that exist solely to provide financial services to their members. Anyone can find one to join, if they are eligible. Unlike banks, it’s the members, not corporate shareholders, that own the credit union. Meaning, all the profits from a credit union go back to its members in forms of dividends, rebates and lowered interest rates. An example: for every 100 dollars deposited, 67 of that 100 dollars will be directly redistributed to its members.
Services provided by credit unions mirror those of big banks, but that’s where the similarities end. On average, credit unions offer lower interest rates on loans and higher interest returns on investments, as well as lower fees for checking accounts, ATM surcharges, overdrafts and stopped payments.
What are some other benefits of Credit Unions?
* Convenience:
There are 5,000 shared branches in the credit union network and 100,000 ATMs in the shared ATM network. In addition, 1,182 credit unions participate in shared branching networks. Needless to say, you WILL be able to find a local credit union near you.
* Membership Impact:
In the last year, credit unions distributed more than $5.3 billion in member dividends and refunds on loan interest payments. Additionally, 2.4 million credit union members have obtained vital credit since 2007 when for-profit lenders pulled back during the same time period. Credit unions enabled a total of 43,800 members to refinance “bad” debt within the last year. And in that same span, credit unions helped more than 37,000 families attain higher education access with fair value private student loan financing.
It truly gives back to its people, as you can see. After seeing those numbers, which one would I want supporting me during hard times?
* Community Impact:
More than 3.7 million Americans have joined a credit union since the end of September 2011. Credit unions helped 786,000 members by extending more than $134 billion of mortgage financing credit in the last year. Some 1,224 credit unions offer financial literacy classes to help members make more informed financial decisions. And in the last year, credit unions provided more than $630 million within local communities for building infrastructure to support new commercial, residential, industrial and farm-related developments.
The Credit Unions not only give back to its members, but they really help out the community they reside in. I love supporting companies that give back to where I live.
On the Make Your Money Matter Website I recently did a search of credit unions located near me. In Santa Rosa, alone, there were 10 Credit Unions that came up, and when I did a search in nearby Sonoma, another 5 popped up that didn’t in the previous search. See how easy that was? The holidays are a perfect time to begin at a Credit Union.
Do You Know Where Your Money Really Goes?
When you use a big bank, do you know where your money really goes?
Up to 97% of the money you deposit can leave the community and all of the profits stay with the shareholders, while you get stuck with the fees.
But when you use a credit union, the money you deposit stays in the community. Your dollar can become someone’s college degree or a loan for a family’s first home. These local reinvestments are the seeds that keep communities growing. (HECK YES!!!)
Let’s invest in something that’s even bigger than the banks. Each other. Make your money matter. Join a credit union today.
For more information be sure to visit the Make Your Money Matter Website.
“Make Your Money Matter” (www.makeyourmoneymatter.org) is a grassroots campaign introduced by eight credit unions from across the country and PSCU that aims to educate a new generation of consumers about the wealth of benefits credit unions provide over big banks.
Disclosure: This post is sponsored by Make Your Money Matter, in association with PSCU, though all views expressed are my own.
