Credit unions and banks have a few things in common, but they also have a lot of differences. Both will lend money to their customers, and both provide checking and saving solutions. However, there are quite a few fundamental differences between the way a bank and a credit union operate, such as the way they provide services to their customers and their overall approach.
There are quite a few very unique features available to consumers who decide to become members of the best local credit union in New Bedford. This article will focus on the top seven reasons why you should join a credit union and what you can expect to receive in the way of services and benefits.
#1 – A Smaller, More Focused Customer Base
While many banks have hundreds of thousands on up to millions of customers, credit unions are smaller and more localized, with some having just a few members, others having hundreds and some having thousands. In fact, St. Anne Credit Union, which has served customers in Southcoast Massachusetts since 1911, may have just over 3,100 members, but it boasts assets of over $18,000,000.
#2 – A Non-Profit Making Organization
Unlike banks that are in business to make money, credit unions are non-profit making organizations. The credit union works on behalf of the members rather than on behalf of the institution. Any proceeds made by the credit union gets passed down to the members at the end of the year in a number of beneficial ways.
#3 – Members Are Owners
The concept of the credit union was based upon democracy and fairness. Each member has a vote and an equal say in how the organization is run. Credit union members are actually shareholders and have the ability to elect the Board of Directors who function as unpaid volunteers. The power is in the vote and each member only gets one vote, regardless of how much money they invest or their position within the organization.
#4 – Members Make Profits
Because a credit union is a non-profit making institution, any profits made are shared by the members. In fact, net revenue is returned to the members in the form of higher dividend rates, lower loan rates and enhanced services. You’ll see a difference in the way a credit union approaches every member service, from checking and savings solutions to a whole lot more.
#5 – Helping Members Manage Their Money
Credit unions help their members to better manage their money. They offer a wide variety of programs and solutions designed to help members grow their money and increase their wealth. Tools and education are available to help members with just about every financial activity, from basic budget-making skills to larger scale financial planning.
#6 – A Common Bond
Credit unions typically join people together that have a common bond. They either work together at a specific business, belong together to a trade union or live in a specific city, county or region. St. Anne Credit Union, the local credit union in New Bedford, offers memberships to people who live or work anywhere in Bristol or Plymouth counties.
#7 – Lower Interest Rate Loans
Credit union members who apply for and get a home or auto loan generally receive a significantly lower interest rate loan compared to traditional banks and lending institutions. So not only is it easier for members to get a loan through their credit union in the first place, but they will get a better deal as well.
Where to Join a Local Credit Union in New Bedford
If you live or work in the New Bedford area, specifically in Bristol or Plymouth counties, you should consider joining St. Anne Credit Union. Founded with a focus on helping others within the community, St. Anne makes money for our members, not for a bunch of outside investors. For more information on St. Anne Credit Union or to find out what you need to do to join a local credit union in New Bedford, contact a representative at 508-993-0011.