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The Benefits of a Credit Union vs Bank Make the Choice an Easy One

Between 2013 and 2020, credit union membership increased by nearly 30% from 98.4 million to 126.6 million. This statistic makes it clear that more and more Americans across the nation are signing up to take advantage of a variety of benefits a credit union membership has to offer. Joining a credit union boasts several perks ranging from low fees to an array of loan products and services. As a partner to credit unions, Extensia Financial understands the true benefits of credit unions vs banks. The following are the five major benefits of a credit union and why to choose a credit union vs bank.

1. Personalized Customer Service

At a credit union, you aren’t just a customer, you’re an owner, and treated like one. Local credit unions offer a superior level of personalized customer service that big banks simply aren’t equipped to provide. As a nonprofit institution, a credit union focuses its efforts and profits on assisting members with financial needs, educating and training them on investment options and counseling them on complex financial matters, such as business loans. They prioritize all these member perks over making profits.

2. Wide Variety of Financial Services

Credit unions provide an assortment of personal and business banking services to their members. You can acquire checking accounts and savings accounts, credit and debit cards, investment accounts, auto loans and mortgages. Many credit unions also offer money transfers, online and mobile banking, and mobile payments and wallets.

Equally, business owners can obtain business checking and savings accounts as well as credit cards. Many credit unions also provide an array of business loan options.

3. Great Interest Rates

Credit union members have the opportunity to capitalize on low loan rates and high savings rates. When borrowing a loan—whether it be a commercial real estate loan or a personal loan—the interest rates are typically lower than those of other financial institutions and banks. Because credit unions are not-for-profit organizations, they’re able to give profits back to their members in the form of higher interest rates on savings accounts.

4. Lower Fees

In addition to lower interest rates, credit unions typically have fewer and lower fees. For those who join a credit union, it’s unlikely you’ll encounter overdraft fees. And if you do, they’ll be minimal compared to banks.

5. Insured Deposits

When becoming a member of a credit union, there’s no need to worry about the security of your investments. Federal credit unions are insured by the National Credit Union Administration through the National Credit Union Share Insurance Fund. Backed by the U.S. government, federal credit unions cover member deposits up to $250,000. State-chartered credit unions, on the other hand, are typically insured by private institutions.

Why the Benefits of a Credit Union Outweigh Those of a Bank

Overall, becoming a member of a credit union typically yields greater benefits than storing your finances in a larger bank. With a credit union, you’ll enjoy a higher level of personalized customer service, more control over the organization since you’re a member, and significant savings via lower rates and higher returns.

But the biggest benefit of a credit union vs bank? Banks are for-profit institutions interested in making a profit off your finances, while credit unions are non-profits looking to reinvest back into their members and communities.


About Extensia Financial

Established in 1998 and headquartered in Simi Valley, CA, Extensia Financial offers competitive and collaborative commercial loans. We partner with credit unions and brokers and connect them to investors across the United States. Additionally, we uniquely support and guide our partners through the entire full lifecycle of loans. Extensia Financial is a proud member of the AVANA Family of Companies.