There are a lot of advantages and disadvantages of credit unions in my area. Owners The first advantage is that the customers of the credit union are owners. This means that the people who are managing the company are also going to be the owners of the company. In other words, the owners of the credit union and the customers of the credit union are going to be the same people. Therefore, all of the decisions that are made about the credit union are going to be made so that everyone at the credit union is going to be able to benefit.
Non-profit
The second advantage is that the credit unions are non-profit. Therefore, the owners or customers will share all of the profits of the credit union. Of course, the business will need to earn some money to survive but they are not going to be looking for ways to make money off of their customers. One of the best parts is that the credit union will be able to benefit from being exempt from paying federal taxes. This means that the credit union will be able to put more of their revenue to work.
Fees
The third advantage is that you will have fewer fees to pay and the savings rates will be so much higher. This means that your account will be free and you will not be required to have a minimum balance. Most of the time, the interest rates that you will be on the checking, savings, or certificates of deposit will be more than the bank will be able to offer you. This also means that the interest that can be charged on the loans or to have credit is lower than a bank. The credit unions are regulated on the interest rates that they can charge.
Technology
The first disadvantage is that access to any type of new technology is limited. This is basically because the credit union is not going to have the money to invest in the new technology. Therefore, the website might not be very appealing to the customers. In fact, there is a chance that you might not have access to your account online. There are going to be some credit unions in my area that will use the new technology, but there are a lot that will not. If the online accessibility is important to you, then you might want to do some research.
ATMS
The second disadvantage is that you will have access to fewer ATMs. This is because the credit union is not going to have the money to install the ATMs in the locations that might be convenient for you. Therefore, there is a chance that you will be charged a fee each time that you use the ATM that is convenient for you. This is one of the main reasons why it is so important for you to read the fine print of your contract with the bank so that you will know if you will be able to find ATMs.
Memberships
The third disadvantage is that the credit unions will have restricted memberships. Most of the time, they will be focused on a certain part of the community based on the geographic location or professions around. This can make it a little difficult to become a member of the credit union. Even though you might not be eligible for the credit union that is appealing to you, you should be able to find at least one that you are eligible for. There is also a chance that you could make a donation to the credit union in order to become a member.
