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Credit Union

Candlefocus Editor
Credit unions are often referred to as financial cooperatives or member-owned financial institutions. They are very similar to banks in the services they provide, such as deposit accounts, loans, ATM's and debit cards. Credit unions are not-for-profit organizations, meaning they are owned and operated for the benefit of the members that use their services, who are actually investors in the organization. This makes them different to banks, which are run as for-profit organizations and whose main objective is to generate profits for shareholders.

By becoming a member of a credit union, you are making a small investment in the operation of the business. That investment is usually a nominal fee of a few dollars. That said, some credit unions offer free membership. Members enjoy the upside of higher returns on deposits, lower fees, and lower loan rates. Plus, many credit unions offer additional features and benefits, such as reward programs, discounted insurance rates, and access to special savings accounts and other perks.

Credit unions have fewer services than large banks, but they often have better rates, fewer fees and more personal customer service. Because of the way they are structured, they don't have to keep up with the changing trends in banking or worry about meeting shareholders’ expectations, as public banks do. Credit unions also tend to offer insights on money management and financial planning, since they are committed to helping members reach financial goals.

Credit union members usually need to meet certain eligibility requirements to initiate an account, such as living or working in a certain area, being affiliated with a certain employer, or a having shared political or religious affiliation. Some credit unions also allow you to join through a charitable donation.

Credit unions offer banking services similar to those offered by banks. Generally, people join a credit union for the great rates, but also receive access to ATM networks around the world, loan and investment options, financial advice, membership rewards and more. Credit unions are becoming increasingly popular as people seek ways to stretch their money farther. Plus, unlike banks, credit unions operate on a nonprofit basis, which means their members receive the full benefit of their revenue.

In conclusion, credit unions are a great alternative to banks, offering members the same banking services while providing higher rates, lower fees and more personal customer service. Credit unions are a great way to save money and have a better experience with your finances.

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