Signs It's Time to Switch to a Credit Union
Just like any other relationship, your banking relationship should provide you with the benefits you need and make you feel valued. Are you getting the most out of your relationship with your bank? Are you paying obnoxious fees, not getting competitive rates on your loans, or just feel like you’re another number? If so, it may be time for you to make the switch from a bank to a credit union. We are here to help you see your own value and get the most bang for your buck. Follow these signs to determine if it’s time for you to switch to a credit union!
What is a Credit Union?
Switching from a bank to a credit union can be a big jump, so it’s important to know the difference between the two before taking the leap. A credit union is a cooperative, not-for-profit, member-owned financial institution. Unlike banks, which are owned by shareholders and must distribute profits to their owners, credit unions are owned by their members, who are also their customers. Because credit unions are focused on benefiting their members, they are able to offer incentives such as better rates on loans and deposit accounts and better customer service. Credit unions are intended to serve as a safe place to save and borrow at reasonable rates.
Besides wanting to feel like you matter in your financial relationship, there are specific signs you should be looking for to help you make your decision to switch to a credit union:
You're Paying Unnecessary Fees
Banks are known to charge outrageous fees. Monthly fees for checking accounts, fees for using ATMs outside their network, fees for replacing debit cards, over draft fees, charges for checks – the list goes on and on. If it’s costing you to be a customer at your bank, it may be worth looking into an account elsewhere, ideally at a credit union that doesn’t charge many of the aforementioned fees! Some banking partners will even reimburse you for fees charged by other banks’ ATMs, and many credit unions offer a large network of fee-free ATMs. We have over 85,000 surcharge-free ATMs in our network for members to use without the fear of paying a substantial amount of money over time for unnecessary fees.
You Want More for Your Money
Interest bearing savings accounts are meant to encourage you to save more by helping you earn more on your account balance. If your bank is only paying you pennies in interest on your account, it may be time to look around for a better place to nest your money. Most traditional banks only pay an average of .04 to .08% interest on savings accounts. Switching to a credit union could open opportunities to earn much more on your savings! Credit unions also generally offer lower interest rates on loans which could save you even more money down the road. If your bank’s interest rates are too high for borrowing and too low for savings, make the switch to a credit union to help you save and earn more.
You Want Better Personal Service
Does your bank prioritize profits over people? Banks are for-profit, which means they have to make money for their investors or stockholders, but credit unions are member-owned and not-for-profit institutions that give back to their members and communities. Credit unions act in the best interests of their members which means you’re not just another number. If you’re feeling cold-shouldered by your current bank, it may be time to switch to a credit union that sees your value and takes pride in being a part of your local community.
If you’re having a hard time dealing with inconvenient fees or inadequate service, it may be time for you to make the change to a credit union. We are here to help you transition as smoothly as possible! Make an appointment online or head to your to speak to one of our member service representatives and switch your accounts today. You can also read our blog learn more about the credit union difference and how credit unions benefit their members.
At Robins Financial Credit Union, our mission is to enhance the financial well-being of our members and community. We honor this commitment by providing educational content to help you make the most of your finances. Read our other blog articles to help you gain the financial knowledge you need to succeed.