What You Need To Know About Credit Unions
If you’re not a credit union member, why not? There are numerous reasons that credit unions are well-loved that may sway your opinion. After reading this article, you’ll discover some of the top reasons for such an untapped demand for credit unions.
A Brief History of Credit Unions
The United States first organized credit unions during the Great Depression due to the massive failures of many banks. As a result, many people lost their entire life savings, which prompted Congress to pass the Federal Credit Union Act in 1934. The idea was that credit unions are not-for-profit cooperatives that provide equitable financial services to members, mainly on a volunteer basis.
During the 1960s and 1970s, many credit unions switched from a federal charter to state charters. That meant that each state had the authority to regulate and supervise its credit unions. Since creating federal regulations for credit unions, they have continued to grow in popularity and preference despite major bank failures such as The Savings and Loan Crisis in the 1980s.
Members Have Benefits
Credit unions remain unique financial institutions that provide many valuable benefits to their members. You’re likely eligible to apply for membership if you work or live in an area served by a particular institution. In addition, credit unions promote saving and investing among their members at lower rates than traditional financial services institutions.
When you join a credit union you instantly become part of what’s known as a “not-for-profit” organization. That means that the money made by your credit union returns to its members in the form of savings, low-interest rates on loans, and better service overall.
Consider the Advantages over Banks
You might not know it yet, but credit unions offer significant advantages over traditional banks. Credit unions are often small businesses, so they can give you the personalized attention that bigger banks won’t have time to provide. Someone will answer you and address your needs if you need an answer right away.
There are several different types of credit unions. The most common type is a “field of membership” credit union, allowing anyone who meets the eligibility requirements to join. To become a member of a field of a membership credit union, you only need to share a common bond with other group members, such as where you work or live.
Experience Superior Safety
Aside from the lower fees, your money is safer in a credit union than in most other financial institutions. Because of their small size and local focus, credit unions don’t have the same resources to invest in high-risk ventures such as buying risky derivatives or putting your savings toward personal trading. That’s not to say that no credit union has ever had problems, but in general, they are in an ideal position to weather a financial storm.
In addition, your savings help keep the credit union afloat since money from members’ deposits is what drives everything they do. So, if you enjoy being an integral part of a beneficial organization that helps members succeed financially, a credit union Cincinnati is ideal for you.
Cincinnati Credit Union – Presidents Federal Credit Union (FCU) is federally insured and backed by the full faith and credit of the United States government for all accounts up to $250,000.00. We have over 60 years expereince and offer the best values with friendly customer service.