Not all financial institutions are built the same. While traditional banks are popular, credit unions offer benefits that most big banks simply can’t compete with.
So, what are the benefits of joining a credit union?
In this article, we’ll highlight 8 enticing benefits of credit union membership so you can decide if joining one is right for you.
#1 Lower Interest Rates
High interest rates can increase the cost of credit cards, loans, and lines of credit considerably. Luckily, credit unions are known for their low interest rates.
Credit unions can afford to offer their members more favorable rates due to their not-for-profit status. These organizations simply reinvest their surplus funds into cost-saving benefits for their members.
Meanwhile, banks must maximize their profits to satisfy their stakeholders, often charging their customers higher interest rates in the process.
#2 Higher Deposit Yields
For the same reasons we discussed above, credit unions tend to offer more lucrative savings rates on their savings accounts, money market accounts, and Term Share Certificates.
As a result, the money you save with your credit union can earn more interest, compounding your wealth faster than if you stored it at a traditional bank.
#3 Lower Fees
From monthly maintenance fees to foreign transaction fees, banks often impose various fees on their customers. Over time, these fees can really add up. Credit unions, on the other hand, tend to charge fewer fees for the same services. For example, at North Jersey Federal Credit Union (NJFCU), our basic checking account has:
● No monthly maintenance fees (as long as you maintain a minimum balance of $100)
● No application fees
● No per check fees
By offering lower interest rates, higher returns, and fewer fees, credit unions help their members save $12.6 billion on deposit accounts and $5.6 billion on auto loans each year.[1]
#4 Superior Customer Service
In addition to being more cost-effective, credit unions are known for their excellent customer service. That’s because they’re generally smaller than traditional banks. As a result, they’re able to get to know their members better and provide more personalized service.
When you join a credit union, like NJFCU, your representatives will go above and beyond to help you reach your financial goals.
With that in mind, it’s no wonder that credit unions boast the highest-rated customer service out of all financial institutions. Consumer Reports found that 96% of credit union members are highly satisfied, compared to just 80% of customers of the top three national banks.[2]
#5 Financial Education
Credit unions care about their members’ financial well-being, which is why they offer plenty of educational resources to enhance their financial literacy.
For instance, your credit union will likely be more than happy to provide you with counseling on complex financial matters, whether you’re preparing to buy a home or trying to get out of debt.
#6 Voting Rights
As noted above, credit unions have members, as opposed to customers. This distinction is important—as a member, you can vote on your credit union’s decisions. For example, you can have a say in your credit union’s policies and social initiatives.
This membership structure enables credit unions to reflect the needs and values of their members, as opposed to external stakeholders.
#7 Community Focus
Obtaining credit union membership often requires you to belong to a certain community. In most cases, this community is your geographic location, though some credit unions may also require you to be a member of a specific:
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● Place of employment
● Labor union
● School
● Religious organization
● Homeowners’ association
However, this community focus doesn’t stop at membership eligibility requirements. Many credit unions also actively engage in the communities they serve, organizing fundraisers, offering grants, and donating to people in need. In turn, credit union members can feel good knowing that their deposits are supporting their community.
#8 Variety of Products
Since credit unions are smaller than traditional banks, you may assume that their services are limited in comparison. Fortunately, this couldn’t be further from the case.
Like banks, many credit unions offer a wide array of financial products and services. For example, here at NJFCU, our members enjoy access to:
● Checking accounts
● Saving accounts
● Money market accounts
● Term Share Certificates
● Credit cards
● Personal loans
● Auto loans
● Mortgages
● Home equity loans
● Home equity lines of credit
Join the Best Credit Union in NJ
Want in on these benefits? You can experience them all first-hand with NJFCU. We’ve been proudly serving our members and their communities since 1936. While our branches are based in North Jersey, we have over 5,000 shared branches across the
country. As a member of the CO-OP network, our members also enjoy access to over 30,000 surcharge-free ATMs.
Unlock the benefits of credit union membership and join NJFCU today.
