Five common credit union misconceptions

Since their founding over 100 years ago, credit unions have offered their financial services to well over 140 million members in the U.S. Yet, many prospective members are unaware of how credit unions work. These are five common misconceptions about credit unions:

1. Credit unions are just like banks. Banks are for-profit institutions owned by investors focused on making a profit. Credit unions are nonprofit entities owned by members, making them more member 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 without a branch 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 and savings accounts, debit and credit cards, online banking, home and auto loans, certificates, plus more. In addition, because credit unions are not looking to make a profit, they often offer better rates than banks.
4. You must meet strict eligibility requirements to become a member. 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 members to see transactions, products and other credit union information. Most credit unions nowadays have apps that you can download to your smart phone for quicker access wherever you may be.

Credit unions combine the best of both worlds: They offer higher rates and are people focused, serving their members and investing in the community at large.

If you are ready to become a member or want to learn more, check out our website or reach out to a representative.