I Killed The Bank, Join A Credit Union And Kiss Your Bank GoodbyeSubmitted by zooamerica on Fri, 03/30/2012 - 20:11
What's the difference between a bank and a credit union?
A lot. I have been thinking about closing my bank account, and joining a credit union. I have made my final decision. Why in God's name do I still have a bank account with one of the big banks? It's time to pull the plug on the banks!
Im going local, with a credit union.
Here is some general information I'd like to share.
Banks are community, regional or national for-profit business corporations owned by private investors and governed by a board of directors chosen by the stockholders.
Credit unions are non-profit financial cooperatives owned by their members and governed by a board of directors elected by, and from among, those members.
Usually there is a common bond among the members, such as belonging to the same organization or living in the same geographical area. Credit unions accept deposits from their members and use them to make short-term loans. Deposits are regarded as purchases of shares, and all earnings of the credit union are paid out as dividends to members.
Since every member is an equal owner and therefore shares a common bond with the other members, the personal experience tends to be much better at a credit union. As co-owner, the credit union works for you to make sure you are happy and have an enjoyable experience.
According to Bankrate.com, “Credit unions have topped the consumer satisfaction ratings in American Banker’s annual survey for 12 years in a row.”
Since a credit union’s primary focus is its people, or co-owners, they are more concerned about making you happy than turning a profit.
As a result, credit unions typically offer more educational services and seminars to teach you about all financial products so you can make the best decision.
Banks, on the other hand, may be more inclined to recommend only those products that bring in higher corporate profits.
As a not-for-profit organization, credit unions have many advantages over banks.
They are exempt from most state and federal taxes, do not have many marketing costs, or high salaried executives.
This allows credit unions to pass on great rates to their members, including:
-Higher Interest Rates on Savings Accounts
-Lower Rates on Auto Loans, Mortgages and Credit Cards
-Free Checking Accounts
-Lower or No Penalties for Overdrafts and Late Payments
One of the ways we can help End The Fed is by moving our money out of the international banks and putting it into a local credit union.