The current generation lacks the understanding of financial management. Most teenagers and working professionals cannot balance their income and expenditure graph. This does not help them save and secure their future.
While there are great deals available for both banks and credit union accounts, there are various experts who suggest young people open a credit union account. The following are the 5 benefits that one can enjoy after opening a credit union account.
Avoid paying high fees on checking accounts
Most bank accounts offer high maintenance fees for checking accounts. But with a credit union account, you can avoid the high fees and use that extra money for gaining a higher return. Since it is not regulated for profits, credit unions offer high profits to the members and you would generally be at the receiving end of the bargain.
Different purposes
Generally, credit unions offer better service as compared to the government regulated banks. The basic logic is that the people are not driving any profits for banks whereas a credit union is dedicated to giving back to the society in terms of financial help. This is why, they are more concerned about teaching the youth about being financially independent, helping them through the entire process.
Deal with lower interest rates and fees on loans
Credit unions are not regulated by Federal Reserve, hence they offer better interest rates in most cases. They also offer better deals on interest rates for various loans. In addition to these perks, the fees of maintenance are low as well. Hence, lower interest rates and fees prove to be very beneficial for the account holders.
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Non-profit nature makes them more assistive in terms of purpose
As mentioned earlier, the biggest advantage of dealing with credit unions when it comes to small-scale account holders is that they do not have much business for the banks. It does not really mean that the banks will not entertain their queries or will not offer any deals which will be beneficial for them, however, credit unions are dedicated to helping the society and boost the financial welfare of the citizens that are related to the union.
Connected to hi-tech advancements
It is a myth that a credit union is not very advanced in terms of technology. All the technological innovations that have come into the banking industry are updated on the technological portals of Credit Unions as well. This makes it very easy to access for the tech-savvy generation. Also, the fact that ATMs and deposit machines are widely available makes it quite compelling for youngsters to open a checking account in a credit union.
Another way to find out the best credit union that is suitable for you is to find out the affordability and the amount of money you are willing to deposit in the account. This way you will know which one to opt for. Make sure you research well and ask experts to help you to choose the one that suits your financial requirements.
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