Credit unions and banks compete for your financial deposits. While both types of financial institutions insure those deposits against loss for up to $250,000.00*, credit unions and banks are different.
What and how much you receive in return for keeping money in a checking, savings, or investment account has a lot to do with whether you’re identified as a customer or a member. This fundamental distinction lays the foundation for how credit unions and banks view the people behind the deposits.
Customers versus Members
Banks refer to account holders as customers. Credit unions see account holders as members. “Customer” implies a transactional relationship while “Member” means something much more profound. In most cases, both types of institutions aim to provide their account holders with superior customer service. But due to the nature of the relationship, what that looks like in practical terms differs from what you might expect. As a not-for-profit cooperative organization, local credit unions provide members the same benefits regardless of how large or small their account balances and often include:
• Part ownership of the financial institution with voting rights
• No membership dues
• No mandatory meetings
• Higher returns on deposits, fewer fees, and lower rates on loans when compared to banks
Most banks are for-profit institutions which are not owned by customers. Financial decisions are often influenced by expectations of the board of directors and shareholders. While both institutions must remain profitable to remain in business, credit unions aim to serve their members. Increased earnings made from lending money to other credit union members are used to pay higher returns on checking, savings, and other investment accounts.
Individuals planning to open an account for the first time or who intend to transfer their money to a new financial institution should consider how this significant difference can help them meet their financial goals sooner.
As you decide whether to choose a credit union or bank to call your new financial home, be sure to select a financial institution that matches your personality, meets your financial needs, and can support your financial goals. We think you’ll find all three at Community Credit Union. If you work, live, or worship in Essex County or a 25-mile radius from Lynn, Massachusetts, we invite you to become part of the Community Credit Union family today.
• Online, mobile, and telephone banking;
• Deposit accounts that include personal and business checking as well as money market, retirement and savings accounts;
• Business services that address the needs of business owners and their employees such as merchant accounts and retirement savings options, i.e., Simplified Employee Pension (SEP) plans and Savings Incentive Match Plans (SIMPLE);
• Surcharge-free ATMs;
• Credit cards that match your financial goals;
• Three convenient branch locations (Our Somerville Branch is open on Sundays);
• Competitive loan rates (automobile, mortgage, personal, and student); and
• Other benefits that show Community Credit Union’s superior customer service lived through our creed of “People helping people”.
All it takes is $25 to open an individual or business share account and become part-owner of our institution. Open your account online or by contacting us at 1.800.862.7009.
*Federal deposit insurance is provided by the National Credit Union Association (NCUA) for federal credit unions and by the Federal Deposit Insurance Corporation (FDIC) for banks.