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Before Joining a Credit Union, Ask These Questions
The primary purpose of a credit union, which is a member-owned, non-profit financial cooperative, is to serve its members.
Credit unions provide tasks similar to traditional banks, such as checking, savings, and loan services. We all need to make decisions regarding our financial health and well-being, but doing so can occasionally be challenging.
Your selections may appear overwhelming and perplexing because many possibilities, advantages, and perks are available.
You can make a more informed decision about whether ark valley credit union is the best financial institution for you by using the information that is provided below:
How Does a Credit Union Membership Work?
Participants in a credit union share a common link: their shared objective is to ensure the financial security of all of the credit union’s members. There are numerous typical methods for joining a credit union:
Some credit unions have membership restrictions based on where a person resides, works, worships, or attends school.
Program sponsored by the employer:-
Some employers provide credit union membership as a perk for their employees. Participation in or affiliation with a group, such as a school, charity, or the military
If a person is a credit union member or qualifies for membership, their immediate family members may also be eligible to join.
Is it Safe to Keep My Money in a Credit Union?
Credit unions are undoubtedly safe places to keep your money because they offer insurance on member deposits.
Deposits in a federally insured credit union are protected by the National Credit Union Administration, much as deposits in a typical bank are protected by the Federal Deposit Insurance Corporation (FDIC) (NCUA).
The National Credit Union Share Insurance Fund (NCUSIF), which is supported by the full faith and credit of the government, insures credit union deposits of up to $250,000 per member.
What Should I Know About Credit Union Checking and Savings Accounts?
A credit union frequently refers to checking and savings accounts as “share accounts.”
While checking (“share draught”) accounts are used for daily purchases, share savings accounts provide dividends akin to interest. Inquire about minimum balance requirements or transaction restrictions before joining the credit union.
Asking about the availability of funds following a deposit and any costs connected with the accounts and services you’re interested in using is also crucial.
Does My Credit Union Utilize the Most Recent Technology?
Many credit unions offer the same electronic services you anticipate from a bank, which can surprise you. However, because every credit union is different, it’s crucial to confirm that the technology you need is offered.
For instance, does the credit union provide mobile apps and internet banking, and are there associated costs?
• How easily accessible are ATMs and are there any costs for using an ATM that is not affiliated with the branch? Will the credit union pay ATM fees from outside its network?
• Does the credit union provide email or text message alerts for changes to accounts or activity on transactions?
What Are Credit Unions’ Current Interest Rates?
Compared to regular banks, credit unions often offer better dividend rates on savings and lower interest rates on loans since they return earnings to members.
Check rates and shop around before deciding on a loan or savings product.
Based on your credit score, many credit unions will provide you with a quote of your eligible rates. Because of the very nature of credit unions, cooperation and thrift are significant virtues. As a result, membership frequently offers perks that go beyond financial services.
Membership in a credit union may also provide the following additional benefits: • Discounts and exclusive deals from affiliated businesses on things like club dues, phone plans, and insurance policies.
• Notary services for signatures
• Service for preventing identity theft
These extra benefits are, of course, merely extra perks on top of the benefits of membership in a credit union with member-focused values and services.
Ark valley credit union would be best if you were now well-equipped to make the best choice for your unique financial needs, whether transferring your cash to a credit union or improving your current financial well-being with additional advantages.