When people decide to start building their savings, the first place most think of is a bank. For most individuals, however, a credit union might be a better choice. So, what are the benefits of a credit union over a big bank?
Banks Run on Profit
Banks have outside investors, so one of a bank’s priorities is to make money for them. The focus on maximizing profits for investors can lead to less-favorable terms, higher interest rates on loans, and more fees for their customers.
Credit unions are owned by their customers, making them members of their financial institution. Instead of keeping investors happy, credit unions are often more focused on proving a better service for their members. At Metro Credit Union, we are here for the benefit of the people who bank with us. That’s our mission – since day one.
Banks Are More Affected by Market Variables
In the financial crash of 2008, certain banks were hit hardest because their drive for profit led them to make riskier investments. Many banks required a government bailout to keep them from going under.
Credit unions weren't affected nearly as much during this crash. In fact, many credit unions saw tremendous growth after the crash as many consumers moved away from the big banks and to their local credit unions.
Banks Play in Other Markets
You can view a bank as a tree with several branches extending to other financial avenues like investment trading, foreign exchange and large-scale business investments. The money to invest in these other branches comes from their customers in the form of higher interest rates and fees.
Credit unions invest in their members instead, by focusing on providing financial products with good rates and terms and services to make banking easier and more accessible. At Metro Credit Union, your business is our priority.
Credit Unions Offer Local Control
Most credit unions, including Metro, serve a local community. Decisions are made by managers and a volunteer Board of Directors. Choices about products and services, branch locations and technology, and even interest rates and fees are made by people who like you who also bank with the credit union.
Decision making at big banks is often controlled by outside investors looking for big profit. National banks are now buying smaller community banks, meaning decisions that affect their local customers are being made halfway across the country.
Credit unions keep control in the hands of people who bank with them. It's one more reason why they can be superior to banks and why, in the long run, your money can go further with a credit union.
MAYBE THE BANK YOU'RE LOOKING FOR ISN'T A BANK AT ALL®
Choosing between a bank and a credit union comes down to what you value most in your financial institution. If you’re looking for better rates, lower fees, and more personalized service, a credit union like Metro may be the right choice. Unlike banks, which focus on generating profits for investors, we prioritize our members’ best interests.
Metro Credit Union's commitment to conservative operations and providing value has led to steady growth year after year. With market-leading rates on auto and mortgage loans, fewer fees, and a customer-centric approach, we’re here to meet your needs today, tomorrow, and for years to come. Contact us today to experience the benefits of banking with a financial institution that puts you first.
