How do you know which to choose in the age old debate of bank versus credit unions? Which will offer better rates, perks, and loyalty to you? Because of the problems big banks have been having lately, people have been moving over to credit unions in record numbers.
What are some of the differences?
Credit Union
They are non profit organizations, fully owned by the members. Everyone pools in their money into the credit union and it is redistributed to other members through loans.
Bank
For-profit organizations that are owned by shareholders. Offer many different financial products and services efficiently and to make money and maximize profits for shareholders.
Car Loans
48 Month Used Car
Credit Union: 3.84%
Bank: 5.49%
60 Month New Car
Credit Union: 3.73%
Bank: 5.09%
Home Loans
30 Year Fixed Rate Mortgage
Credit Union: 4.29%
Bank: 4.20%
5/1 Year Adjustable Rate Mortgage
Credit Union: 3.53%
Bank: 3.48%
Reasons You Would Want To Choose A Credit Union
Lower minimum balance requirements
Less binding and restrictive eligibility requirements
Credit unions carry the protection, up to $250,000 insured, but you also get the other added benefits
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