Top 7 Myths about Credit Unions
When you are deciding where to open your financial accounts, you may wonder: should I go to a bank or a credit union? What are the differences?
Myth #1: Credit unions and banks are the same.
Fact: Credit unions’ “People Helping People” philosophy puts members first.
Credit unions don’t answer to outside shareholders and instead give earnings back to members through benefits like higher returns on savings, lower loan rates, added services, and fewer fees. The Credit Union Association estimates that credit unions provided $12.6 billion in direct financial benefits to the nation’s 120 million members during 2020. They also support their local communities through financial education, serving underserved populations, volunteering, and contributing to community initiatives.
Myth #2: Credit unions have strict eligibility requirements.
Fact: While credit unions do require that members meet certain requirements to satisfy a common bond, these requirements are broad, and few of them truly limit membership. It is usually as simple as living or working in a credit union’s service area.
Myth #3: “Member” means the same thing as customer.
Fact: Being a member means that you’re an owner! As a member, you’re part of something smaller with a bigger impact.
Myth #4: My money is not as safe in a credit union.
Fact: Your deposits, up to $250,000, are federally insured by the NCUA and backed by the full faith and credit of the United States Government. Credit unions have the latest security to keep your funds safe and available. We also offer free financial education on identity theft, fraud and the latest trends in cybersecurity!
Myth #5: Local means limited.
Fact: Credit unions offer the same products and services as banks, in addition to more personalized offerings, such as credit counseling, financial education, investment services and more! Credit unions participate in large ATM networks, giving members access to their funds at more surcharge-free ATMs than some of the big banks.
Myth #6: Credit Unions share the business model as a bank.
Fact: Banks are for-profit financial institutions owned by investors; credit unions are not-for-profit financial co-operatives owned by their members. When you’re a member, you’re an owner!
Myth #7: Switching over to a credit union is difficult
Fact: Our philosophy of serving every member, every moment, makes the process personalized and simpler than you think! Rogue also offers several ways to join including online, by phone or in a local branch. We love to hear from our members. If this article resonated with you or if you have future ideas for articles, please share with us!
We love to hear from our members. If this article resonated with you or if you have future ideas for articles, please share with us!