Bookmark this page

Since Credit Unions are non-profit organizations formed for the benefit of their members, there are several advantages of  using credit unions compared to banks.

These include:

1. The charges for various services are lower or zero compared to bank charges. For example, some banks charge for bank statement, while many credit unions offer the statements for free.

2. Credit unions usually offer a higher rate of  interest for term deposits , since they are exempt from federal and state government taxes.

3. Members of a credit union can get loans at a lower interest rate compared to bank loans. This is because credit unions have a larger number of  low interest bearing deposits compared to commercial banks, resulting in a lower cost of  funds.