What are the Advantages of a Credit Union?

What are the Advantages of a Credit Union?
  • Opening Intro -

    Have you noticed how the financial landscape is changing?

    It used to be that traditional commercial banks were the only way to manage your money.

    Now, there’s a growing selection of banking alternatives to choose from.


Credit unions make up a growing corner of this market as membership rates rise. People are turning away from faceless, multi-national corporations for local credit unions with heart.

But there are more reasons why you’d choose a credit union over a big bank. Here are four advantages to making the switch.

1. You pay lower fees

It can be expensive to manage your money with a traditional bank. Seemingly everything has a price — from ordering cheques to using ATMs. Even keeping a basic account costs money if you can’t keep a monthly balance.

By comparison, the average credit union is relatively cost-free. Most offer no-fee chequing accounts with no minimum balance.

They can do this because they aren’t beholden to stockholders like the typical commercial bank. Their loyalty is to their members.

2. You earn more interest

You work hard to contribute to savings every month. But the money it shelters doesn’t always work hard for you. Most commercial banks have low interest rates and other fees that stunt your savings growth.

Credit unions help you reach your true savings potential with higher interest rates on all deposit accounts, including common savings accounts and TFSAs. These competitive rates help you earn more over the long-term.

And all this extra interest comes at no risk. It, along with your deposits, are backed by a 100 percent guarantee unique to insured credit unions. They’re insured by the Credit Union Deposit Guarantee Corporation (CUDGC), which protects your money just like a regular bank.

To find out how the CUDGC impacts your savings, learn more from First Calgary Financial about credit union savings accounts.

3. You access lower rates on loans

Sometimes, your savings fall short of what you need — whether you’re carrying out seasonal maintenance or buying a new car. A personal loan and other financing options help you take care of what you need without delay.

Just like commercial banks, credit unions provide more than just chequing and savings accounts. They too offer a full suite of financial services that include a range of personal loans and lines of credit.

With fast and flexible options, credit unions make it easier to get the financing you need. They also come with lower rates than most commercial banks, making it a more affordable option when you need help.

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4. You become a shareholder

The way a commercial bank operates benefits the few. A board of directors and a small group of stakeholders share profits that the average customer never sees.

It’s different with a credit union because a membership means you’re a shareholder. Mainly, you benefit from better services with fewer fees. But you also get annual dividends. And you vote who becomes the board of directors, giving your voice a chance to be heard.

Credit unions exist to serve their communities, so they want to help you — whether it’s with an affordable loan or a savings account. They put your needs first with simple and straightforward services, which can’t be said about every bank.

Sometimes, it pays to buck the trend. If you’re tired of paying higher fees and losing out on better rates, check out what a local credit union can offer.

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