Although credit unions have many benefits, like more competitive rates and lower fees, they can’t always offer the same products as banks. When you’re considering a change to your bank or looking for a new one, here are some questions to ask a credit union before signing up.
What are your rates?
Credit unions offer better rates than banks do, but the rates will vary depending on the credit union.
Ask about rates for checking, saving, and other products. If you’re looking for a loan, ask about their lending rate as well.
A good place to start would be a local credit union, such as the Credit Union of Denver.
Are there any fees for using ATMs outside of your network?
One of the reasons credit unions are so popular is because they often offer better rates than banks. One way credit unions save money is by charging less for ATM transactions. If you use an ATM outside of your network, you may be charged a fee. To avoid this fee, make sure to ask about any fees before signing up with a credit union.
What products do you offer, and how do they differ from what’s offered by banks?
One of the major differences between banks and credit unions is what they offer. Banks often have more products than credit unions. Credit unions typically offer more competitive rates on loans, which can make them a good option if your bank offers high interest rates.
But if you’re interested in products that are usually only offered by banks, make sure the credit union you’re considering offers those products as well before signing up.
What are the advantages of switching to your credit union?
While there are many advantages to becoming a member of a credit union, one perk is that they offer competitive rates. Because they’re owned by their members and not shareholders, credit unions have a lower cost of funds which means you can get better deals on loans and mortgages.
Another pro is that when you have an account with your credit union, they usually pay dividends back to the members because they use your money to make loans to other members. This is different than banks who usually keep that money and only pay a small amount of interest, if any, on specific types of accounts.
If you are looking for a way to save money on your banking, credit unions may be the option for you. However, it is important that before deciding to switch banks, you research and know what will realistically work best for you.