How is a Credit Union Different from a Megabank?
You're tired of your megabank, and you're ready to switch to something better. If you're like a lot of other Americans, you might be considering switching to a credit union. Maybe you saw someone mention credit unions on social media, or you might have stumbled across the idea while researching banks. Credit unions definitely present an appealing choice, but they also offer all of the same services that banks offer. So what exactly is the difference between a credit union and a megabank?
The History of Credit Unions
Megabanks automatically give the advantage to the person at the top. The bank's owner makes the most important decisions, gets the most recognition, and - of course - makes the most money. Credit unions take a more humane approach, and they've taken this approach since they began in the mid-1800s. The earliest credit unions sprang up because regular banks weren't helping people with limited incomes as much as they were helping people who were already rich.
We can still see this history reflected in how credit unions work today. Credit unions are both nonprofit and democratic in their decision-making. The nonprofit aspect means that when you use a credit union for your banking needs, you'll know that nobody is getting rich off of your money. As a member, you'll actually be a partial owner of the credit union, so your needs will always be considered. Members get to elect board members, and those board members vote on decisions that impact the credit union. At a megabank, on the other hand, clients get little to no say in major decisions.
How Does This Structure Work on a Daily Basis?
Now you know how big decisions work in a credit union, but will you notice any big differences in your daily financial life? Yes and no.
When it comes to basic services, you may not be able to tell the difference between a bank and a credit union. At either institution, you can make deposits and withdrawals, set up long-term savings options, get a debit card, etc.
However, if you switch from a megabank to a credit union, you'll notice some differences that can really add up. For example, you can keep more of your money if you apply for a loan. While megabanks try to make as much money as possible off their customers, credit unions don't do that.
You may also find that your credit union meets your needs better than your old bank. That's because credit unions have a community focus. Whether they serve a particular region, age group, or profession, credit unions serve specific groups of people. This means that they can focus on more specific financial needs.
How to Find a Credit Union
If you're ready to make the switch to a credit union, we can make the search easier. Community banks and credit unions are bringing personalization back to banking. Now all that's left is for you to find the one that's right for you. Take a look at Bundlefi to see your options in one place. You won't find any megabanks on our site. Instead, you can search for small, personal institutions that provide the service you deserve.