Today, millennials have many choices regarding the financial institution they choose. There are traditional brick and mortar banks, solely online banks, and some credit cards offer their own checking accounts, savings accounts, and loan options.
Even with the vast options available, now is still the best time for millennials to open a credit union account.
Understanding The Credit Union Difference
A credit union is a not-for-profit organization that provides members with a variety of financial services.
They have traditional checking accounts and savings accounts while also offering loans, credit cards, and other services to fit your financial needs. Credit unions are member-owned, and due to this distinction, they can return their profits to the members through reduced fees, higher savings rates, and lower loan rates.
Their cooperative structure allows them to work towards the ultimate goal of their member’s financial well-being instead of working to increase their profits. While anyone can join other financial institutions, you qualify as a member to take advantage of credit union products and services.
5 Reasons To Open A Credit Union Account
Now that you know the types of accounts and features offered, keep reading to learn why millennials should open a credit union account.
1. Get Better Savings Options
More than any other group, millennials store most of their money in a liquid or easily accessible form such as a savings account, money market account, or Certificate of Deposit (CD).
Since credit unions operate as a not-for-profit organization, they can offer higher savings rates, so you get the best return on your money.
2. It’s Cheaper To Borrow
Just as credit unions may have higher rates for savings accounts, they can also offer lower rates when it's time to borrow.
Whether you are looking for an auto loan, home loan or personal loan, credit unions are known for lower rates compared to most other companies. Again, this is because their status as a not-for-profit organization allows them to pass on savings to their members.
3. You Pay Less In Fees
Banking fees add up quickly. Between overdraft fees, ATM fees, and monthly maintenance costs, having an account open at other financial institutions can quickly become expensive.
Credit unions are dedicated to providing services that improve your financial status, and charging lots of expensive fees doesn't help you, so most don't do it.
Many credit unions offer free checking accounts. When they do charge fees, they tend to be lower than average. So, when you have an overdraft fee or need to pay to use the ATM, you can expect less to come out of your pocket. While a few dollars here and there might not seem like much, it's easy for these expenses to pile up.
4. Personalized Experience
Credit unions tend to be smaller and have fewer locations than traditional banks and other financial institutions. Therefore, they're able to offer a more customized experience for members. They are also known to be more customer friendly and for having a better connection with their customers.
This is especially beneficial when you are trying to qualify for a loan, and your credit score or financial history might not be perfect. They can look at you as an individual to determine the best course of action for your situation.
Also, when you need support in choosing the best financial service for you, credit unions focus more on your actual needs and less on meeting a specific quota for the service of the month.
Credit unions have an invested interest in their members' financial success. That's why they do more than offer financial products and services.
You’ll often find credit unions provide programs to help members rebuild their credit, protect their identity, prepare themselves for financial success, and more.
When you join a credit union, you aren't just opening an account, you are joining a family that cares about your financial future.
Getting A Credit Union Account
As mentioned previously, you have to be a member to join a credit union. That's one of the differentiating factors compared to other financial institutions.
The general requirement is that you be a part of the credit union's field of membership. This means you should have a connection to the credit union. The link might be that a member of your family has joined or your employer has a relationship with the credit union, or you live in a region that immediately qualifies you.
Once you find a credit union with one of these connections, that's it. It's time for you to start reaping the benefits of opening a credit union account.
Join Our Credit Union Family
At Greater Texas | Aggieland Credit Union, we offer a variety of products and services that cater to the millennial community.
Whether you need a checking account, savings account, retirement planning, or education on how to improve your finances, we have something for you. When you're ready to experience the credit union difference, give us a try, we’d love to have you join our family.