Which is Better For You: A Bank or a Credit Union?

When you’re considering where to open a bank account, you might ask yourself: should I use a bank or a credit union? You can find both types of financial institutions across the country. Comparing a credit union vs. banks requires you to consider some personal preferences, like whether you prefer low fees or widespread ATMs.

If online banking is important to you, your choice between banks and credit unions becomes even more significant. Some smaller financial institutions might not have a smartphone app, which could impair your banking activities. Continue reading to learn more about banks and credit unions so you can make the right choice for your financial needs.

Perks of Using a Bank
perks of using a bank
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Opening a financial account at a bank carries its share of advantages. Traditional banks have been around since the 15th century, so you can rest assured knowing your money is safe and in good hands. Since the first bank opened its doors, these institutions have adapted to fit the needs of modern-day customers. 

Anyone can open a bank account at a bank, but not everyone is eligible to become a member of a credit union. This gives you more options when you are comparing different types of banks. There are many more banks operating around the country than there are credit unions, especially when you consider the boom in online banks.

Another advantage of using a bank is its widespread availability. Many big-name banks have brick-and-mortar locations throughout the country. Likewise, most have ATMs you can use to conduct your banking activities without any fees. 

A credit union, on the other hand, might only have one or two physical locations. These types of institutions tend to be much smaller than banks. You may not be able to find locations throughout the country. Plus, if you are out of your home area and need to use an ATM, you could pay hefty fees just to withdraw cash.

Banks also tend to offer the most services and products compared with credit unions. This is due to the size of most major banks; the more customers they have, the more money they generate and the more services they can afford to offer.

Aside from a deposit account, banks typically offer the following services:

  • Savings accounts.
  • Credit cards.
  • Personal loans.
  • Auto loans.
  • Mortgages.
  • Wealth management.

But what about new technology? 

Banks, especially online banking companies, are much faster at rolling out new technology, banking apps and features than credit unions. Mobile banking has been around for several years now, but many credit unions are just starting to implement it into their online systems. 

Other rapidly changing technologies that are standards among banks include:

  • Mobile deposit.
  • Wearable compatibility.
  • Digital fraud alerts.

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By Admin