Credit Union Vs. Banking Institutions
Credit unions tend to be a mystery to those that have always utilized traditional banks for their checking and savings account needs. Many people wonder if there is really a difference between a bank and a credit union, and the curiosity of this typically makes more people look at the differences between these two financial institutions. Curiosity plays a big part in how people come to find out that a credit union is going to be a better solution for your banking needs.
Fees
Various banks have different types of fees based on the type of account that a banking customer has. There are some free checking accounts for college students and senior citizens, but most of the accounts in between are going to have fees associated with checking accounts. The only way that the customers can avoid these traditional bank fees is by setting up a direct deposit in most cases.
The credit union, however, is going to give customers more options for a low fee or free accounts. This is typically the first thing that entices people that are trying to eliminate or lower the fees that they have incurred at their traditional bank. There are certainly going to be more opportunities to save money because these fees become a thing of the past. A South Houston credit Union becomes a favorable choice for customers that want multiple options for accounts that do not have fees.
Multiple Ways to Save
While most banks do not offer interest-bearing checking accounts, the large majority of credit unions offer interest on both checking and saving accounts. That is very significant for people that have large sums of money to deposit. Credit Unions will often offer rates that are just as competitive as cyber banks when it comes to checking accounts. The interest rate is guaranteed up to a certain amount in most cases. This allows customers to get money added to their account every month just for having a certain amount in the bank.
Financing The Next Home or Car
Customers may not even have to buy a house or car on their agenda when they sign up to become a credit union member. In time, however, a car or a new home will be something that a lot of credit union members will buy. For this, it is always good to have a membership with a credit union.
Financing a home or a car is going to be easier and much more cost-efficient because the interest rates with a credit union will be lower. It is also a good idea to join a credit union before you need to finance these things. Members get a chance to build a history with the credit union, and this gives them a better chance of acquiring the loan that they are looking for.
Better Online Tools
A South Houston credit Union can be the answer to better budgeting. A large number of customers use apps and online banking for an abundant number of transactions. Credit unions can help those that are trying to set up budgets and get a better understanding of what they spend every month. Credit Unions have counselors in place to help with wealth management, and online tools are good for those that want to better allocate their funds.
People that do not know where the money is going will have more bounced checks. They will have a harder time getting out of debt. The credit union provides online tools that can help people get alerts about their balances and build spreadsheets that can track their spending better.
