The best parts of life are about setting and reaching your goals – from learning to manage the financial aspects of living on your own to investing for your future. Having a financial partner that provides the right mix of services and value is essential for your success, but with so many options, it is often difficult to choose the one that is right for you.
When selecting a financial institution, it is wise to research each option, considering convenience, fees and rates, product offerings, and other factors. For many, this means comparing banks and credit unions – but what is the difference, and what might make one better than the other?
Pricing
When it comes to your money, you want to keep as much of it as possible and waste as little of it as possible. That means finding a financial institution partner that offers you a good value, with high yields on savings, low rates on loans, and low fees. This is one area where credit unions shine. Because credit unions are not for profit, they can focus on providing better value. Rather than returning profits to investors as banks do, credit unions return profits to accountholders, or members, in the form of better pricing. Savings rates are typically higher, lending rates are generally lower, and fees are fewer and farther between.
Convenience
Large megabanks are known for having a brick-and-mortar branch on every corner, which can be an undeniable convenience. However, with our surcharge-free ATM networks, many credit unions like Magnolia offer thousands of additional locations for conducting transactions nationwide. Additionally, as digital banking continues to enable members to accomplish more from anywhere, having an extensive network of branches becomes less of a priority.
Regarding digital services, online and mobile banking provides everyday convenience for credit union members and bank customers. Credit unions’ not-for-profit status allows them to invest as much as possible in digital conveniences to serve their members better. Even small credit unions can offer digital financial solutions that pack powerful convenience.
Flexibility
Sometimes getting the loan you need requires working with a lender offering greater flexibility. With stricter lending requirements and many layers of bureaucracy, larger banks cannot provide this flexibility. Choosing a local financial institution, such as a credit union, is your best bet for finding a lending team that is more willing to work with you and help you reach your goals.
Product offerings
While smaller financial institutions may not have some of the niche financial products and services offered at mega banks, credit unions provide various financial solutions ranging from consumer loans, mortgages, credit cards, savings and checking accounts, and more. The key is to research specific offerings to ensure the available accounts are a good fit for your financial needs.
Local roots
Local roots are an often-overlooked quality in financial partners, but it should be a priority. When a financial institution is deeply rooted in the community, it gives back to that community. For example, locally based credit unions understand that helping meet needs in the community strengthens the community as a whole. Local roots also inspire genuine personal service for neighbors and friends.
Want to know more about the ways credit unions like Magnolia can meet your needs? Explore our website, stop by a Magnolia branch near you or give us a call us at (800) 997-7919.