People may have certain ideas about credit unions and what they have to offer that aren’t exactly true. These are five common misconceptions:
1. Credit unions are just like banks.
Banks are owned by investors focused on making a profit. Credit unions are owned by members, making them more customer-focused. Because they are member-owned, credit unions give priority to the needs of their members.
2. It will be hard to access my money because my branch isn’t nearby.
Credit unions have access to a CO-OP network of 30,000 free ATMs and 5,000 shared branching locations, making it easy for you to access your money anywhere. You aren’t limited to your local credit union.
3. They don’t offer as many perks or rewards as banks.
Credit unions offer the same financial products as banks—checking accounts, debit and credit cards, online banking, home and auto loans plus more. In addition, credit unions are often able to offer better rates than banks.
4. You must meet strict eligibility requirements.
You may be eligible based on a number of different factors. An initial deposit (or membership share) of $5 to $25 may be required to open a checking or a savings account.
5. Credit unions aren’t tech savvy.
Credit unions have websites that offer online banking, allowing customers to see transactions, products and other credit union information. Many credit unions also have apps that you can download to your smart phone for quicker access wherever you may be.