Why Credit Union Is Better Than Other Financial Institutions

June 30, 2012 · Posted in Finance 

Joining a credit union Jacksonville can be beneficial to you. They have lower interest rates on loans and higher interest rates on savings deposits. This means that your savings account will earn if deposited with them.

On the other hand, you will be paying less interest expense on loans taken out from them. This is already a good bargain on your part. Think about the savings it will give you for these transactions. Because you are member, you have a share in its income.

That is because it is governed and owned by its members. Membership is not really exclusive although there are certain requirements to comply. If you live in the same community, you are free to join the association regardless whether you are a businessman or an employee. In this example, the yardstick for accepting members is being a part of said community.

Employees can also form an association. Regardless of church affiliations, anyone who is an employee is eligible to join. It really depends on the criteria from which the association was created. You can have credit association for workers only, for people in a particular location or for people in such a religious congregation.

They are not recession proof. Like many other institutions, they are also affected by the recent economic downturn. However, they are not badly hurt compared to banks and other establishments.

Basically, you can save on interest costs on loans taken out from them. You are also able to earn more interest income with your savings deposits because they charge higher interest rates than banks. The association’s insurer is backed by the US government.

Members feel that they have the responsibility for the welfare of the entire organization. One member is affecting the other. In worst cases when they fold up, depositors or members are protected by the insurance. They can merge with other credit union Jacksonville just like other financial institutions do during crisis.

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