What are the Benefits of Using a Credit Union?

More people than ever are flocking to credit unions for their banking needs. In fact, in 2020 alone, more than 274 million people worldwide were members of credit unions, and by 2021, credit union assets skyrocketed past the $2 trillion mark as they took the lead in the financial services sector. Because credit unions are so consumer-oriented, this trend is no surprise. People are looking for financial institutions that truly care about their customers—an element at which credit unions tend to excel. Before you dive into credit union membership, let’s explore the benefits of using a credit union.

What is a Credit Union?

A credit union is a type of financial institution that is owned and operated by its members. Unlike traditional banks, credit unions are not-for-profit organizations that exist to serve the financial needs of their members, which is why credit union customer service is typically above average. Like banks, credit unions offer a variety of services such as savings accounts, checking accounts, loans, mortgages, and other financial products. They also provide their members with access to shared branching services so they can use branches in other locations. Overall, credit unions are committed to providing quality service and competitive rates while maintaining a safe and secure environment for their members' funds.

What are the Differences Between Banks and Credit Unions?

Banks and credit unions are both financial institutions that offer savings and loan products to their customers. However, there are some key differences between the two. Banks are typically for-profit entities, while credit unions are non-profit organizations that are owned by their members. Banks offer a range of services such as investment banking, foreign exchange, and insurance products, while credit unions focus more on consumer banking services such as checking accounts and loans. Additionally, banks often have higher fees than credit unions for the same services.

Why Join a Credit Union?

Credit unions offer a great alternative to traditional banking. They provide members with a wide range of benefits, from lower interest rates on loans and mortgages, to higher yields on savings accounts. Joining a credit union can also help you build relationships with people in your local community and support local businesses. And, credit unions are also known for their excellent customer service and personalized approach to banking. By joining a credit union, you can enjoy the convenience of banking while still receiving the personalized attention that only a local financial institution can provide.

Additionally, credit union checking accounts have lower fees—or fewer of them—than their traditional banking counterparts, and credit union savings accounts typically offer more advantageous interest rates, helping you to increase your savings faster. Other credit union benefits include higher yields on certificates of deposit (CDs) and other savings products.

How to Choose a Credit Union

Choosing a credit union is an important decision that should not be taken lightly. With so many different options available, it can be difficult to know which one is right for you. To make the best choice, it's important to consider factors such as fees, interest rates, customer service, and more. By researching each option and comparing them side-by-side, you can find the credit union that best meets your needs and provides the most value. Some factors to consider when choosing the right credit union include:

·        How many financial services do they offer?

·        Does the credit union offer online banking services?

·        What are their savings and lending rates?

·        Do they have deposit insurance? 

·        Is there a credit card rewards program?

·        How many branch and ATM locations are there?

·        What is the credit union membership fee?

·        What are the other fees, if any, associated with savings, checking, and other accounts?

Finally, consider your credit union’s customer service reputation. Many financial services institutions’ growth and potential is aligned with good customer service – and for today’s consumer, this service goes beyond just not making errors. Good customer service should include engagement, transparency, and swift responsiveness when you need it most.

Trust Encompass Credit Union with Your Banking Needs

If you live, work, go to school, own a business, or worship in Tipton, Clinton, or Howard County, Indiana, we have good news for you – you are eligible to be a member of Encompass Credit Union and gain access to our outstanding customers service plus a world of services and conveniences such as:

·        Remote Deposit

·        Electronic Bill Paying

·        Online Banking

·        Mobile App

·        Personal and Business Accounts

·        Overdraft Protection

·        Loans and Mortgages

·        Certificates of Deposit

·        Federal Insurance Coverage

All you have to do to join is to check the eligibility requirements on our website and open a savings account with a minimum deposit of just $5 at any of our convenient branch locations.

Join the Encompass CU community and bank with people you know. Contact us now and become a member today!