5 BENEFITS OF CREDIT UNIONS
People often ask if credits unions are better than banks or not, even though these two organizations tend to have similarities in operations, there are still other things they do differently and that in itself is relative and the relativity of its operations also makes it better than each other for different people becomes different, however, there are many benefits for Denver credit unions, as long as your a member of this organization. You might be wondering if truly it is the right time to make the switch, in this article we will be discussing quite several benefits that will help you make an informed decision about choosing a Denver credit union. When comparing a credit union with a bank we must understand what a credit union is all about. Credit unions are cooperative financial institutions that are owned and operated by members, which means it is an organization that is people-driven and people-oriented, they are not operated by shareholders, which means that most credit union organizations including the Denver credit union offer higher interest deposit and loans with lower interest rates, even though belonging to a larger financial institution has its advantages there are many advantages that you can not find anywhere else asides from a credit union.
- Lower fees: Compare to other financial institutions credit union tends to offer a lower fee for loans borrowed from them, and this is because of their not-for-profit business structure and also their tax-exempt status. Instead of paying shareholders like other financial institutions, Denver credit unions can invest their interest back into their customers.
- It has a better savings structure: When it comes to the credit union, according to the national credit union administration’s credit union and bank rates report for 2021, credit unions give better interest rates than banks on their CDs and other saving accounts.
- They have lower loan rates: In addition to offering lower fees, and having a better saving structure, Denver credit union are also known to offer lower interest rates on loans, as much as credit union do almost same thing with bank they are known to give a lower loan rates.
- Commitment to Members: As a people oriented and people centered organization, credit union rely solely on memebership to continue its operation, instead of being driven by profit, they are more committed to their members and their financial health.
- Investments in Communities: Credit unions is strengthened on communities of people, as such they also placed priority on also giving back to communities by investing in communities, especially local communities. The goal is targetted at improving the lives their members and as well add value to community where they are situated.