Monday, October 20, 2008

Credit Union or Bank?

A recent article by the Associated Press (AP) was posted on Yahoo! Finance that compares a credit union to a bank based on safety, rates, services, and loans.

Here are some points worth mentioning:

  • On credit union safety:
    "The coverage for credit unions is provided by an insurance fund run by the National Credit Union Administration, a government agency that supervises the industry." "There's a common misconception that credit unions aren't insured."

  • On credit union rates:
    "Credit unions generally offer more competitive rates on savings accounts, CDs and other financial products. This is because their not-for-profit status means that they aren't motivated to substantially mark up their services."

  • On credit union services:
    "So even if your credit union doesn't have a big physical presence, it may be in networks that make it easy to access, said Fred Becker, president of the National Association of Federal Credit Unions, another industry trade group. Customer service at credit unions may also be better since they're member owned and operated, he said."

  • On credit union loans:
    "It may be easier getting loans from credit unions these days since they were less impacted by the risky mortgages. As not-for-profits, credit unions generally did not push subprime loans."
You can find the complete article here.

Based on the key points above, you can feel reassured knowing you made the right choice trusting Team One Credit Union for your finances.