PAGE 6
THE COURIER
HOW TO CHOOSE
www.wcfcourier.com
SUNDAY, AUGUST 2, 2020
How to Choose a Credit Union you own the place because you do!
Member ReShonda Young, of Waterloo, Iowa, visits with Dupaco’s Chloe Brown at the Mullan branch in Waterloo, Iowa. (Photo: Courier Photographer Brandon Pollock)
What was the first financial choice you ever made? It probably took place before your first job, even as far back as when your income consisted of Tooth Fairy money and lucky pennies. The first financial decision you made is also one of the most critical choices—where to keep your money. When you first made that decision, piggy banks and sock drawers seemed like perfectly acceptable options. As it turns out, a financial account is the best solution. But how do you choose which financial institution is right for you? Credit unions offer many of the same accounts and loans as banks, but their ownership structure is different. Credit unions are cooperatively owned by their members. You have a say in how your credit union is run—electing its board of directors— and you get to share in its success in tangible ways. Credit union’s profits are distributed back to members in the form of free products, lower interest rates on loans and higher interest rates on savings accounts.
Banks, however, are for-profit and owned by investors. Every credit union is different, but each provides similar products and services found at other financial institutions. You can ask these questions to help you determine your priorities as you compare credit unions and other financial institutions:
3. Will I have good access to ATMs? You might feel like you see more bank ATMs, but credit union ATMs are just as accessible. In fact, the largest credit union ATM network is larger than the biggest bank ATM network. Find out which other financial institutions share your credit union’s network. Free ATM transactions are not limited to machines with a particular credit union name on them. 4. What can I do online? More financial institutions are offering online and mobile banking services. Find out what you can do from your computer and smartphone. Can you check your balance? Schedule payments? Transfer money between accounts? Make mobile deposits and mobile payments? Taking advantage of online products can be a convenient way to avoid a trip to the ATM or the nearest branch.
1. Am I eligible for an account? Credit unions have membership requirements, but don’t let that intimidate you! Requirements can be as simple as living in a specific community, working in a particular field or having a family or friend relationship with someone who’s already a credit union member.
5. Speaking of the nearest branch, where is it? Find out what the hours of operation are and how they work with your schedule. Can you access your money through other branches, too? This could come in handy if there’s a location close to work or school. Many credit unions participate in national networks for shared services. These allow you to conduct transactions at more than 5,000 credit union branches nationwide—as if you were at your local branch!
2. How much does it cost to join? Are there any fees associated with opening an account? Is there a minimum balance required? Joining a credit union involves purchasing a share (usually $5). But this is different from a fee—it means you’re a member-owner of the credit union. That means you can act like
6. What types of rates and fees can I expect? Credit unions focus on the quality of service they provide to their members, rather than profits. Financial cooperatives generally offer better interest rates on savings accounts, competitive loan rates and fewer service fees than other types of
financial institutions. When choosing between credit unions, compare rates and fees to determine which one fits your financial needs and situation. 7. Will I have access to financial education? Credit unions are all about people helping people! Financial cooperatives want to help their members understand their money at a deeper level and, ultimately, improve their financial positions. Many credit unions offer educational tools and services to help members get ahead, including oneon-one guidance, credit monitoring, webinars, videos and more. 8. Will my money be safe? The federal government stands behind credit unions. Deposits are insured up to $250,000 by the National Credit Union Association. 9. What can my financial institution do for me? Ask about products and services tailored to your situation. Don’t settle for a financial institution just because you need an account. You should also want to have an account there. Choosing a financial institution is a personal decision, influencing how you manage your money and your time. If you make an effort to ask questions and compare services, you’ll find the best home for your finances. Article contributed by Dupaco Credit Union