Why Bank at a Credit Union?

With all that has been going on in our economy lately, people are starting to question the banking system. Did you know that the Federal Reserve is not a part of our government? In fact, when they meet with Congress, the Federal Reserve is pretty much telling Congress what to do – not the other way around. It may be shocking to find out that the Federal Reserve is just like any other big business, driven by profits and out to make as much money as possible. Their primary goal is not to keep your money safe or to help you get to a place of financial freedom. No, their primary concern is making money.

But you do have options. Did you know that credit unions are non-profit organizations that are owned by their members? Credit unions are made up of members that share some common bond like belonging to the same school, employer, or organization. And because you are a co-ownder, the credit union tries to make you happy and ensure that you have an enjoyable experience. Your deposits are insured by the National Credit Union Association up to $100,000 in the same way that your deposits are insured for the same amount by the FDIC at the bank. Since credit unions are non-profit, they do not have high-salaried executives or many of the state and federal taxes to pay. And the savings are passed down to you in the form of lower interest rates on loans, higher interest rates on savings accounts, free checking accounts, and lower fees on overdraft or late payments.

Here is a video that was posted on YouTube that does a good job explaining some of the differences between banks and credit unions and why the free iPod you get for opening an account just might not be worth it.

Tags: bank, credit union