Just tips:
Most people are eligible to join a credit union through their employer, their community or a professional association, and most never bother to check. Credit unions are nonprofit member-owned organizations, so instead of paying shareholders, they return profits in the form of lower fees, better savings rates, and cheaper loan rates. Check what’s available to you before you settle for a big bank.
The customization step is where most people get stuck, and it’s the part that has changed the most. Credit unions organize membership around a membership area: an employer, a school district, a county, a church, a union, or a professional group. These fields have expanded so far over the years that most adults now qualify for several without knowing it.
The member-owned structure is what makes checking out worth your time. A bank answers to shareholders, so low fees and savings rates exist to generate profit. A credit union has no shareholders. Profits are returned to members as cheaper loans, higher deposit yields and fewer fees. Deposits are also protected. The National Credit Union Administration insures accounts up to $250,000 per depositor, the same coverage the FDIC provides to bank customers.
The approach holds up better than the small-town image suggests. Thousands of credit unions share surcharge-free branches and ATMs through a national cooperative network, so a local credit union can still serve you when you travel or move.
Finding your way is fast. Start with your employer, as many companies partner with a credit union as a workplace benefit. Search NCUA’s free online finder for credit unions that accept anyone who lives, works or worships in your area. Check the professional associations, alumni groups and unions you already belong to. If a relative belongs to one, most credit unions extend eligibility to immediate family. Some allow you to qualify with a small one-time donation to an affiliated nonprofit.
Once you find one you can join, download its rate plan and fees and drop them off at your bank. If credit union wins on the accounts you use the most, move your direct deposit first, then move automatic payments over a statement cycle so nothing jumps.
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