What Are the Major Benefits of Joining a Credit Union?

When you join a credit union, you become a member-owner of a financial institution that exists to promote the financial success of those it serves. Like commercial banks, credit unions provide a wide spectrum of financial products and services such as checking and savings accounts, credit cards, auto loans, mortgages, personal loans, wealth management solutions, and more. However, there are fundamental differences between these two entities that can have a meaningful impact on the benefits they provide. We’re delving into how the unique credit union model translates into important advantages for you so that you can get the most of your membership:

Credit unions focus on meeting members’ financial needs — not prioritizing profits for outside shareholders.

As a not-for-profit cooperative, credit unions leverage the combined resources of their members for the purpose of supporting their interests and goals. They do not rely on outside capital, and therefore, are not constrained by the need to generate profits for private investors or outside stockholders. This framework empowers the cooperative to focus on its mission of building value for their members and enriching the communities they serve.

On the other hand, traditional banks must satisfy not only their customers but also their investors, who may or may not be depositors of the financial institution. Given that these two groups are not necessarily the same, it makes sense that pressures to meet target levels of profitability might not always align with the needs of their customers.

A credit union returns its earnings to members.

While a traditional bank distributes profits to its investors, the surplus income that a credit union generates is reinvested in the cooperative to be used on behalf of its members. Earnings are returned to members in the form of better rates, minimal fees, and a high level of personalized service that includes financial education and a member-focused banking experience.

You will get access to a wealth of information and services that can help improve your financial well-being.

Credit unions often connect their members to financial education resources and valuable services focused on improving their members’ long-term financial health. Many of these financial institutions offer workshops, online resources, and free financial literacy seminars on a regular basis. They may also support members by providing low-cost debt counseling, or access to special pricing for assistance in important areas of financial life such as home buying and estate planning.

Lower-cost loans enable you to enjoy a better quality of life now while building for the future.

Credit unions can offer significant savings on credit cards and low-cost loans that feature a competitive APR (annual percentage rate) with fewer and lower fees as compared to traditional financial institutions. These savings can offer access to the items you need for a better quality of life now — and allow you to plan for a more promising future. They can make all the difference when it comes to affordability and purchasing power of important assets, such as a home which can provide long-term stability while allowing you to build wealth and financial security.

You will have the potential to grow your savings faster and earn more for your money.

Whether you are saving for a specific personal goal or need an account in which to grow your emergency fund, a credit union may be able to offer you a higher yield on deposit accounts versus a traditional bank. While a credit union pays out “dividends” to its members rather than interest, you can compare products across various financial institutions by examining the APY (annual percentage yield).

You are likely to save on basic maintenance and account transaction fees.

Along with reduced fees on credit cards and loan products, credit unions typically provide low-cost checking accounts with no monthly service (or maintenance) fees. Members also tend to save on items such as checks and overdraft charges, as well as transactions like wire transfers, foreign transactions, and out-of-network ATM usage. On the other hand, commercial banks often boost their non-interest income with recurring fees on transaction accounts each month, and some will impose a charge if an account holder’s balance falls below a required minimum. 

Being a member of a credit union does not mean sacrificing convenience for value.

Lastly, it’s perhaps important to address the false perception that only the megabanks and large regional financial banks offer leading edge financial solutions and 24/7 convenience. On the contrary, most credit unions that have survived and continue to thrive today are committed to investing in the technology and infrastructure that allows them to keep pace in an intensely competitive financial environment. 

As a financial institution that has served busy law enforcement professionals and their families for over seventy years, The Police Credit Union demonstrates a clear understanding of the importance of making it as easy as possible for members to take care of their financial business, whenever and however they chose to access our services. Along with 24/7 Contact Center, we offer a robust array of digital and mobile banking services including bill pay, digital wallets, mobile deposit, the peer-to-peer money transfer service Zelle, and much more. In addition, members can access more than 30,000 ATMs and 5,000+ branch locations nationwide through the CO-OP Shared Branching Network.

Become a member of The Police Credit Union and start enjoying the exclusive benefits that come with being part of our community. Your journey to better banking starts here!

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