A checking account is crucial in managing your money and dealing with expenses. While banks are often seen as a more traditional provider of checking account services, credit unions generally offer better rates and better service. In this ALLIANCE article, we will explore why even the simplest financial product is better at a credit union.
Lower Fees
If you're used to using a traditional bank for your banking needs, you've probably had to pay an abundance of fees. That's because fees are one of their primary sources of income. The goal of a bank is to make money for its shareholders. This is the most significant difference between banks and credit unions. Banks will typically put their shareholder's needs above that of their members. On the other hand, credit unions are not-for-profit financial institutions, meaning the needs of their members come first. One result is that checking accounts from a credit union typically have much lower associated fees, and sometimes they have no fees at all.
Credit union perks include lower or nonexistent monthly service fees, reduced transfer fees, smaller overdraft fees, and no ATM fees. By choosing a credit union over a bank, you stand to save a significant amount of money over time and at ALLIANCE there is no monthly service fee for most of our checking account products.
Members Come First
As we alluded to earlier, the main difference between banks and credit unions is that credit unions are member-driven as opposed to profit-driven. Besides lower fees, this difference also means that credit unions offer better member service than banks. There is much less automation and much more personal interaction. Credit unions are owned cooperatively by their members, so it's not a shocker that superior member service is a significant pillar of credit union operational standards. The financial services provided by a CU are explicitly designed to benefit its community members.
Thanks to the focus on member service, credit unions provide a more satisfactory and enjoyable financial experience for their members. The 2017 American Customer Satisfaction Index Finance and Insurance Report found that credit unions easily outperform banks regarding overall customer satisfaction.
So, what does all this mean when it comes to your checking account? It means help from a person is always just a phone call away. It also means your voice is heard, your vote counts, and the credit union is continually looking for ways to put money back in your checking out instead of taking it out.
Local Service, Nationwide Convenience
One of the draws that large national banks have is the convenience of having a branch or ATM right around the corner, wherever you go. Indeed, this is an advantage; members with checking accounts at such banks can avoid paying out-of-network ATM fees more easily. Over time, out-of-network ATM fees can accumulate quickly.
Despite being smaller and servicing a local member base, credit unions can still offer the same level of convenience. Many credit unions have banded together to create a CO-OP that allows their members to access a national network of ATMs free of charge and at ALLIANCE we offer ATM Rebates to cover any fees, nationwide.
Credit unions like ALLIANCE that are members of this network can offer their members the advantage of in-network ATMs and branch services even when they are outside of the credit union's physical ATM and branch footprint.
In addition to nationwide access through the CO-OP network, credit union members also benefit from the other advanced technologies offered by national banks. Credit unions like ALLIANCE also provide free online and mobile banking. Allowing you to access your account anywhere, at any time.
ALLIANCE Credit Union is dedicated to offering our members better rates and service. If you are interested in signing up for an ALLIANCE checking account then visit our website, give us a call at 806-798-5554, or stop by one of our branches for more information!