Oftentimes people view credit unions and banks as being the same service, however, they couldn’t be further from the truth. There are quite a few ways that credit unions differ from banks. If you’re on the fence, deciding between working with a bank or a credit union, we’ve outlined some of the biggest benefits credit unions offer below.
Not-for-Profit Financial Cooperatives
Credit unions are not-for-profit financial cooperatives, which means they are beholden to their members, not driving profits for shareholders. This allows credit unions to focus on delivering affordable banking solutions, rather than focusing on creating profits that drive up the share price. With this unique structure, credit unions are able to make decisions and policies that benefit their members.
Lower Rates and Fees
Since credit unions are not-for-profit, any profits that are made are returned to the members in the form of lower interest rates on loans, higher interest rates on deposits, and lower fees. The purpose of many banks is to generate profits and drive share prices up, which often leads to higher rates and fees which makes it hard for banks to compete with credit union rates.
Local & Personalized Customer Service
Most credit unions (including KEMBA Financial) are highly localized, meaning they’re not run by executives from halfway across the country. Credit unions are often run by individuals in your community. That means your local credit union understands you and your unique situation. If you work with a credit union, there’s a good chance that you and your banker are on a first-name basis with one another!
KEMBA Can Help
KEMBA Financial Credit Union is a credit union that serves the Central Ohio residents. We have 12 branches in the Columbus area, as well as best in class digital banking solutions that allow you to bank from anywhere, 24/7. Add that to our award-winning member services team, and you’ll see why KEMBA is a better way to bank. If you’re interested in joining KEMBA and experiencing the benefits of credit union membership, contact our local, dedicated associates at 614.235.2395 and select Option 2 to start the process.