So you’ve been banking with, well… a bank, for most of your adult life. But maybe you’ve at least been curious about this “credit union” thing? The only thing is—what even is a credit union, and how is it different or, more importantly, better than a bank?
Let’s clear up some common misconceptions about credit unions and open your eyes to what makes banking with a CU the best for you.
The connotation of a “small, community credit union” probably elicits one common immediate reaction—they’re too tiny. Because oftentimes “tiny” can mean archaic, behind the times, inaccessible or disconnected. But not only is this patently false, as most credit unions these days have just as much, if not more, online and mobile access to accounts—it’s also more of a pro than a con. In fact, banking with a community credit union means faster access to team members who understand your local wants and needs and can more likely accommodate them.
Sometimes smaller is better, y’all.
It’s true that credit unions are member-based, and when you join one you are a part owner of the institution. But what might have escaped you is the ease with which an individual can join a community credit union. In fact, most CUs, Sioux Falls Fed for one, need nothing more than a basic deposit account with a miniscule opening amount to make you an official member. (Including all the perks that come with it, such as dividends and convenience services.)
Being a member can be a pretty sweet deal.
What do you get with a big, national bank? A brand name? The fact is, valuing a banking provider simply because of a recognizable logo is a fatal mistake. Many large financial institutions operate as for-profit, something that inherently ranks the consumer behind revenue. Credit unions are not-for-profit, which means that when the CU does well, the members do well. This can take the form of the aforementioned dividends, as well as lower interest rates, higher returns on deposit accounts and expanded services.
So if a credit union is starting to sound like a pretty relevant option for your financial needs, you’re only one little deposit account away from becoming a member—talk to our team about your options.