Is a Credit Union Good For Your Finances?

PennyGem’s Elizabeth Keatinge discusses credit union vs. bank.

Transcript

00:00 (upbeat music)

00:02 Maybe the pandemic has prompted you

00:06 to make some changes to your finances.

00:08 Joining a credit union may be one way

00:10 to get more flexibility and have your needs served first.

00:13 See, credit unions are not profit-driven businesses

00:16 like banks.

00:17 They're governed by their members,

00:18 many of whom volunteer to serve as board members,

00:21 committee members, or in other roles.

00:23 According to US News and World Report,

00:25 credit unions have less rigid eligibility requirements,

00:28 lower interest rates, deposits are insured

00:30 the same way as banks,

00:31 and there are greater financial literacy resources.

00:34 There are cons, like limited financial product offerings,

00:37 and fewer physical branches.

00:39 As Forbes points out, there are also fewer ATMs,

00:42 and credit unions, although they have stepped up

00:45 their technology game, still lag behind banks

00:47 when it comes to their app and online features.

00:50 However, can the benefits outweigh the cons?

00:52 According to a Credit Union National Association report,

00:55 the average annual financial benefit

00:57 to a single credit union member is $85.

01:00 For households, it was $178.

01:03 HuffPost also points out that during the pandemic,

01:05 banks are tightening lending standards,

01:07 slashing credit lines, and making it tougher

01:10 for lower-income customers to get by.

01:12 (upbeat music)