According to the National Credit Union Administration, there are over 6000 credit unions in the USA. There are hundreds of banks with tens of thousands of branches across the USA. In this article, you are given a series of arguments for and against banks and credit unions. It is then up to you to pick which one you want to choose. Credit Unions Find It Easier To Provide Better Customer Service A credit union is owned by its members because it is a cooperative. Credit unions are supposed to provide affordable financial services to its members, and if it has no members, then it goes out of business. A not-for-profit status helps to create a members-first mentality, which makes it easier for credit unions to provide a good service and especially good customer service. The problem is that sometimes it works the other way. Without the motivation of profit, credit unions can go the other way and start becoming complacent about their service, …show more content…
Banks ask for things such as minimum balances, or direct deposits every month, maintenance fees and the use of BillPay. Credit unions may ask for similar things, but such rules are more common with banks. Banks Have More Features And Account Perks On the flip side of credit unions imposing fewer rules, a credit union’s accounts may have fewer perks and benefits. A bank may have its hefty set of rules, but they often come with a variety of accounts that have sexy perks and features. For example, you may have to maintain a balance of X amount to keep your savings account free with a bank, but the bank may also offer tiered rates that are linked to emerging technologies. Banks may offer investment opportunities that credit unions simply cannot. Even things such as mobile check cashing are more common with bank accounts than they are with credit union accounts. Credit Unions May Be More Flexible Than