Are you new to banking? Whether you've been mainly an in your mattress person or you're wanting to open a savings account, we've got some advice for you! If you're on the hunt for banking services, you've definitely encountered two of the most common types of financial institutions, credit unions and banks. Have you wondered what the differences are and what the best choice is? If you're not sure, we'll tell you what we think below!
When you think of a financial institution, which do you think of? Most think of those major banks entrenched in the history of the United States. You may also think of these because they often do a great deal of national advertising with million-dollar campaigns. These banks tend to have the latest tech, more locations, and large customer service departments. Many folks feel that these areas make them feel superior, but we beg to differ. What is the downside of banks? As we mentioned above, million-dollar marketing campaigns should put up a red flag because that is money that credit unions, more often than not, return to their members. Another red flag for banks is that they are for-profit institutions, so money often comes first before the customer. One of the most prominent issues with banks also has to do with profit; their interest rates on savings accounts are usually little to nothing comparably to a credit union or online bank.
We are especially huge fans of the other major type of financial institution, credit unions. What exactly is a credit union? By definition, a credit union is a nonprofit-making money cooperative whose members can borrow from pooled deposits at low-interest rates. What does that mean to you? At P1FCU, we are truly here for our members and not for profit. We pride ourselves on giving back to our communities throughout the Pacific Northwest instead of giving our profit to shareholders. Along with giving back, credit unions tend to have better rates than most banks. While banks may have an edge by having many locations throughout the United States, many credit unions have banded together to combat this issue by forming the Co-Op Shared Branching Network. This network allows you to conduct financial transactions at over 5,000 branches throughout the country. Are there credit unions that are not in this network? Yes, various credit unions are dropping out, but we're not because we're here for our members no matter where they are and support the credit union movement. What's not to like about credit unions, specifically P1FCU? We can't think of anything! If you can, let us know, and we'll see what we can do about it! Ready to start your financial journey with a credit union? Visit p1fcu.org or your local branch; we can't wait to meet you!