Account holders don’t typically see all the ways in which banks and credit unions differ. The biggest difference between banks and credit unions is that credit unions are cooperative financial institutions where loans and other services are offered through money provided by individuals for nonprofit. Credit unions add members who meet certain requirements and who are members of specific organizations.
Credit unions operate more fairly because of a set structure. Credit unions customize their services to fit their target clients’ needs and this is a huge advantage for members. Members are able to vote on policies that will keep services up to date with their needs. The democratic operation of credit unions allows members to be more in control and involved with their money. This also allows credit unions to offer members lower fees than larger banks.
Joining a credit union will offer a range of services that you will always have a voice because they function on membership. Every member’s voice carries the same weight, regardless of how much money sits in his or her account. The National Credit Union Share Insurance Fund (NCUSIF) federally insures these financial institutions. Since they are nonprofit, the excess earnings are used to benefit the members with a safer, more secure credit union, especially in times of economic uncertainty.
For more information about why joining a credit union is a great decision for your financial security, contact the team at Valley Federal Credit Union in Harlingen and Brownsville. Call our offices at (956) 546-3108.