Blog Post

All folks looking to do personal and business banking in York have to choose between using a regular bank or a credit union. As both are established financial institutions, both options can offer in-person and online banking in York, including services like mortgage loans in York. As much as they have in common, there are also many key differences, and potential banking clients should consider credit unions as a more personalized and individual experience for all their financial needs. Nowadays, many citizens are put off by the impersonal, big business feel of traditional banks and seek out a better fit for their lifestyle and goals. Very simply, a credit union is owned by its members, not shareholders, as in banks, which instills a greater sense of involvement. Any profits made by the institution can be returned using things like lower fees.

Superior Member Service

Credit unions are not-for-profit, so their focus is inherently on their members and member success first and foremost. They thrive on providing exceptional personalized service to clients to help them realize all financial goals and assist with any needs. One recent study by the Credit Union National Association showed that credit unions won the top, number one slot in consumer satisfaction ranking for 21 years consecutively. Many credit unions also invest in their members by offering individualized financial support through counseling and training, educating them on the more complicated banking affairs.

A credit union can be smaller than a traditional bank and, as such, have less physical locations. This is rarely a problem for members, though, as the credit unions have partnerships for ATM usage like CU$, reimburse fees, or charge no fee at all. Some credit unions are even part of credit union network, called shared branching, where members can go in person to other affiliated locations for their banking needs.

Community

Credit unions are notably involved in their communities and encourage more significant interpersonal interaction, consistent with their commitment to providing outstanding member service. Many credit unions give back to their communities through programs like FirstCap Gives Back which supports several local charitable organizations throughout the year.

To maintain tax exemption, credit unions cater to specific organizations or areas, including employees of certain businesses, schools, and residents of certain geographic areas. 

As a member of a credit union you are an owner and part of a financial cooperative. Members also have the right to vote and decide on important issues, such as choosing board members. The credit union board is not paid and oversees the overall function to benefit the members. This offers an exponentially greater sense of control for citizens as compared to regular, for-profit banks.

Wide Variety of Financially Beneficial Services

Credit unions are usually smaller than regular banks, but this does not mean they offer less services. The list of common resources and services a typical credit union offers to members is long, including, but not limited to, shared branches with other unions, credit cards, overdraft protection, car loans, and home equity loans. The focus of credit unions is not on profit, but they can still make a profit. As an owner of the credit union, members can benefit from this and receive money back from the institution. This can take the form of offerings like higher interest rates on savings accounts and CDs. Overall, because they are tax-exempt and have a not-for-profit business approach, credit unions tend to have fewer and less expensive fees across the range of their services. Similarly, the charged interest rate, or APR, is commonly lower than for the same agreements at conventional banks for members looking to borrow. According to the Credit Union National Association, membership at a credit union saves its clients a collective $8 billion each year compared to traditional banks.

Prospective members should check out a credit union before applying for membership to ensure it is a good fit. Credit Unions are insured by the National Credit Union Administration (NCUA), similar to the Federal Deposit Insurance Corporation, or FDIC, which insures banks. Member accounts are insured up to $250,000. However, First Capital offers Excess Share Insurance (ESI) which insures accounts for an additional $250,000. This means your First Capital accounts are insured up to $500,000.