What are the Benefits of Federal Credit Unions?

Deciding where to manage your money is an important decision in your financial future. For most people, it comes down to credit unions versus banks. When making a decision, it’s crucial to choose a financial institution you can trust to keep your best interests in mind. When it comes to trust, service, and low rates, federal credit unions stand apart. These are a few of the many benefits of a credit union. 

Credit unions are not-for-profit cooperative institutions 

Credit unions offer the same essential services as banks, including checking and savings accounts, loans, credit cards, and other financial services. However, one of the primary differences between banks and credit unions lies in their structure. Banks are for-profit companies that depend on their customers for revenue. On the other hand, credit unions are not-for-profit institutions controlled by their members. As a result, credit union members are part owners with a voice within the organization. 

Members received personalized service 

Because federal credit unions are member-owned, there are some requirements to open an account. Typically, any member of the community can join for a small fee. For example, DEXSTA Federal Credit Union is open to people who live, work, worship, or attend school in New Castle or Kent County, Delaware, or Cecil County, Maryland. To become a member of a credit union, you only need $5 to open a share. 

Once you’re a member, you can expect to be treated like family with highly-personalized customer service. After all, everyone who invests money in a credit union is also a part-owner of that credit union—with only $5 to open a share and zero minimum balances on checking accounts. 

Credit unions offer lower rates and fees 

When researching credit unions versus banks, look out for unnecessarily inflated interest rates and fees. Since credit unions pass profits back to members as part of the cooperative structure, you can find lower rates on loans, higher savings rates, and reduced fees at a federal credit union. 

When all is said, one of the greatest benefits of a credit union is that they prioritize the well-being of their members over their bottom line. In other words, credit unions are run by the people, for the people. If you’re interested in becoming a DEXSTA Federal Credit Union member, start here.