Blog Post

York residents have two options when it comes to banking: a credit union or a regular bank. Both are well-established financial institutions and both can offer online and in-person banking in York. While they share many similarities, there are some key differences. Potential banking clients should consider credit unions for a more personal and personalized experience for all of their financial needs. Many people today are disillusioned by the big-business feel of traditional banks. They seek out better options that fit their needs and lifestyle. Credit unions are owned by their members and not shareholders like banks. This instills a higher sense of involvement. You can return any profits to the institution by paying lower fees.

Superior Customer Service

Credit unions are not for profit, and their primary focus is on members and their success. Credit unions thrive on offering exceptional personal service to their clients, helping them to achieve all financial goals and address any other needs. A recent survey by the Credit Union National Association found that credit unions ranked first in satisfaction for 21 consecutive years. Credit unions often invest in their members by providing individualized financial support, such as counseling and training. This helps them to understand the more complex aspects of banking.

Credit unions are usually smaller than traditional banks and have fewer physical locations. Members are rarely affected by this as most unions allow members to use various ATMs and other bank/credit union machines. They also often reimburse fees or charge no fees. Many credit unions are part of credit union networks like the COOP Financial Services network where members can visit other locations to fulfill their banking needs.

Community

Credit unions are active in their communities. They encourage greater interpersonal interaction and support outstanding customer service. Credit unions often give back to their communities by partnering with local businesses to help them grow and provide scholarships to students. This is a significant difference from banks that invest only in large, impersonal industrial ventures.

Credit unions are limited to certain areas or businesses in order to maintain tax exemption. This includes employees of certain schools, labor unions, residents of certain areas, and students at certain schools. Credit unions are open to serving many groups. This is usually due to credit unions merging their member allowances. Some credit unions allow certain family members to join. Many of the financial education services are provided by staff or local business leaders who provide expertise.

Members' accounts help other members to obtain personal and business loan accounts in York. This includes mortgages in York. The money of members is used to pay dividends to each other and to make loans to others. Credit union members also have the right to vote on important matters such as the election of board members. The credit union board does not receive any compensation and oversees the entire function for the benefit of members. This gives citizens a greater sense of control than regular, for-profit banks.

A Wide Range of Financially Beneficial Services

Although credit unions tend to be smaller than regular banks in size, this does not mean that they offer fewer services. A typical credit union provides many common resources and services to its members, such as shared branches with other banks, credit cards and overdraft protection. Credit unions are not focused on making a profit. However, they can still make money. Members can enjoy the benefits of this as co-owners and get money back from the institution. These can be in the form of higher interest rates for money saved in savings accounts or CDs. The average credit union rate on a 5-year CD was.76 as compared to.63 for banks. Credit unions are exempt from tax, so they tend to charge lower fees for a wide range of services. For members who want to borrow, the APR charged for interest rates is often lower than those at traditional banks. Credit union membership saves clients $8 billion annually, according to Credit Union National Association.

Prospective members should review all details about a credit union before they apply for membership. This will ensure that it is a good fit. Credit unions are all insured. However, the backing institution may vary. Federal unions and certain state-qualified ones have insurance that is backed by the National Credit Union Administration through National Credit Union Share Insurance Fund. This fund is similar to the Federal Deposit Insurance Corporation or FDIC backing regular US banks. The US government supports the NCUSIF and insures all accounts up to $250,000.First Capital also offers additional protection up to $250,000 through Excess Share Insurance. And, it is only one of 12 in Pennsylvania that offers this addtional protection.