Where to Save and Invest? Bank or Credit Union?
The need to make money is typical for all human beings who want to survive. However, even this can be the number priority, it is undeniably true that saving and investing should be at the top of the list. This may then lead to making a decision whether to have the bank or the credit union.
Fundamentally, banks and credit union are the same in many ways for these are both institutions where you could keep your money, opt for necessary loans, and invest. Nonetheless, its advantages may vary in different ways so it must be necessary that you are aware of it before you decide. Before you can decide which among these two options will fit you best, it would be a great idea to read more about the advantages of each platform which are provided below.
The Charms of Credit Unions
You might be wondering why on earth a lot of individuals want to keep their money or invest in credit unions instead of a bank? Well, here are some of the things why they stick to this type of solution.
lower account fees
Credit unions are said to be non-profit organizations. For this reason, they do not take as much account fees as the typical bank that has a goal to make a profit.
However, credit unions may still earn profits but these most likely go back to the organization and to the members through dividends.
interests in accounts are typically higher
If you tried to read more sources about which platform gives higher interest rates on savings accounts, time deposit, and many other accounts, you may learn that credit unions are very attractive. Basically, when an institution has low account fees but high monthly or annual interest rates on accounts, there is no reason why people will never consider being a member of that institution.
3. Loan interest rates are lower
There are lot more products or services such as loans which are lower in credit unions than in banks. Because these are non-profit institutions which do not require paying some taxes, the organizers of credit unions see to it that this advantage can be felt by members through lowering down some important products and services.
Main Attractions of Banks
Although one can say that credit unions could be the best option due to its beneficial features, the banks would also have its outstanding appeal.
Try to read more below.
Availability of multiple saving and investing options
Since banks have to earn profit, they have to extend their products and services to realize this goal. This becomes an advantage to clients or members who want to save and earn more than the usual.
2. Multiple locations and high technology options
When you research about credit unions, you might read more that these may have limited locations so you may have a hard time doing transactions if you are in other areas of the globe. On the contrary, many bank companies and offices are set up both locally and internationally to attend the needs of their clients with ease. Additionally, the use of software, online system, and other modern devices to enhance banking experience truly heightened the attraction of many people.