Credit Unions and Traditional Banks

Understanding the institution that you entrust your personal or business money with is very crucial. Chandler credit union best establishment. They have really diversified how people bank today. People are slowly shunning down the traditional way of banking opting for Credit Unions. A Traditional bank is only involved in keeping your money for you, making you a customer whereas with a credit union you are a member.

Why Credit Unions?

It feels good to be part of a banking institution that you keep your money with, but it feels even greater when you know you are a member. Credit Unions let the members vote and are part of the board, the traditional banks are run by stakeholders and no one else has a say in how the bank is run.

A traditional bank will focus more on rendering commercial loans for big and credible investors. A Credit Union, on the contrary, focuses on enhancing members’ savings and offering consumer loans.

The Three pluses of a Credit Union

1. Organized-A credit union is an organized institution which in most cases is local; this emphasizes on the member’s needs. This is not the case with a traditional bank; banks are open to all making it hard to focus on the average banker.

2. Non-profit-Through lower loan rates and higher saving rates, a credit union guarantees its members profits, unlike the traditional bank which earns profits that are then paid to the stakeholders.

3. Members volunteer-The traditional banks have paid board members to run the institution. With a credit union members volunteer to be part of the board. This really creates for diversity and growth of a banking institution since the different members can run for the election to be part of the board.

There are more advantages with Credit Unions. Look for one near you to understand more on why it is best compared to traditional banking.