Millions of Americans switched from corporate banks to credit unions in the last few years. Is one better than the other? Here are the benefits and drawbacks of each option.
Credit Union Benefits
Credit unions are not-for-profit organizations, so they can better prioritize the best interests of their customers. That means they often have fewer fees and higher returns on savings deposits. Also, credit unions value their relationship to the customer, so they tend to be more personable and offer perks like free financial classes.
Credit Union Drawbacks
Looking to diversify your investment portfolio or try investing in your first stock? Credit unions might not be the best option. Unlike commercial banks, credit unions usually don’t offer many investment products. Their options are usually limited to checking and savings accounts and a few different types of credit cards.
Commercial Bank Benefits
Big banks offer full service – investment opportunities, advanced technology, mobile apps, and services for small businesses. Commercial banks also offer increased accessibility by having multiple branches across the country and sometimes across the world.
Commercial Bank Drawbacks
Banks must provide a profit for their investors, so they’re more likely to charge higher fees for things like overdrafts or bounced checks.
There are benefits and drawbacks to both options, but picking the best option for your finances could improve your banking experience immensely!