How to Choose a Bank or Credit Union That Is Right for You
Compare their sizes., Address membership concerns., Research the services they offer.
Step-by-Step Guide
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Step 1: Compare their sizes.
Banks can vary in size from small local banks to very large international corporations that are in hundreds of locations.
Credit unions tend to be smaller and cater to a local community, rather than a national population.
Larger institutions tend to offer more services and features, while small institutions tend to offer more basic options.
For instance, a small institution might not be able to provide investment consulting or be able to exchange foreign currencies. -
Step 2: Address membership concerns.
Credit unions are a member run not-for-profit financial institution.
This means that the union's members govern the union, rather than it being governed by a large corporation.
Credit unions often have membership requirements that determine eligibility.Banks do not have eligibility requirements like credit unions do.
However, they are for-profit corporations that are run by shareholders.
Credit unions may have eligibility requirements based on the community you live in, your employer, occupation, religious institution, or membership to a fraternal organization. , Credit unions and banks will offer different features, though at their core they are both financial institutions.
For example, some smaller credit unions may not offer lending for mortgages like big banks do.
You will need to make a list of the features that you consider important for your financial institution, and use this list to narrow your search.
If you want an institution that offers online or mobile banking, make that a priority in your search.
If you want to be able to use ATMs without fees, look for institutions that reimburse you for ATM fees or are part of a large ATM network. -
Step 3: Research the services they offer.
Detailed Guide
Banks can vary in size from small local banks to very large international corporations that are in hundreds of locations.
Credit unions tend to be smaller and cater to a local community, rather than a national population.
Larger institutions tend to offer more services and features, while small institutions tend to offer more basic options.
For instance, a small institution might not be able to provide investment consulting or be able to exchange foreign currencies.
Credit unions are a member run not-for-profit financial institution.
This means that the union's members govern the union, rather than it being governed by a large corporation.
Credit unions often have membership requirements that determine eligibility.Banks do not have eligibility requirements like credit unions do.
However, they are for-profit corporations that are run by shareholders.
Credit unions may have eligibility requirements based on the community you live in, your employer, occupation, religious institution, or membership to a fraternal organization. , Credit unions and banks will offer different features, though at their core they are both financial institutions.
For example, some smaller credit unions may not offer lending for mortgages like big banks do.
You will need to make a list of the features that you consider important for your financial institution, and use this list to narrow your search.
If you want an institution that offers online or mobile banking, make that a priority in your search.
If you want to be able to use ATMs without fees, look for institutions that reimburse you for ATM fees or are part of a large ATM network.
About the Author
Kenneth Wood
Creates helpful guides on crafts to inspire and educate readers.
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