How to Decide Whether or Not a Credit Union is Good for Your Financial Future

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

Transcript

00:00Maybe the pandemic has prompted you to make some changes to your finances.

00:08Joining a credit union may be one way to get more flexibility and have your needs served first.

00:13See, credit unions are not profit driven businesses like banks.

00:17They're governed by their members, many of whom volunteer to serve as board members, committee members or in other roles.

00:23According to U.S. News and World Report, credit unions have less rigid eligibility requirements,

00:28lower interest rates, deposits are insured the same way as banks and there are greater financial literacy resources.

00:34There are cons like limited financial product offerings and fewer physical branches.

00:39As Forbes points out, there are also fewer ATMs and credit unions, although they have stepped up their technology game,

00:46still lag behind banks when it comes to their app and online features.

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

00:52According to a Credit Union National Association report, the average annual financial benefit to a single credit union member is $85.

01:00For households, it was $178.

01:02HuffPost also points out that during the pandemic, banks are tightening lending standards,

01:07slashing credit lines and making it tougher for lower income customers to get by.