Credit Unions Vs Big Banks Essay

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Credit Unions vs Big Banks This paper will talk about how credit unions and big banks compare and contrast with each other. Each have benefits and disadvantages that customers need to consider. Customers have many options to choose where they want to bank and which is best for their needs. There are many benefits of credit unions. One of the benefit is that you are a member of credit union. "As a member of a credit union, you’re not only a customer, but part-owner of the organization. Aside from receiving better service, you possess voting rights, have a say in the operation of the credit union and receive dividends" (Young, 2016). Other benefits are that you will better rates and lower fees at credit union than any big banks. "Credit unions are not-for-profit organizations and share surplus funds in the form of higher interest rates on deposit accounts" (Young, 2016). Customer service at credit unions will be better than any big banks because credit unions are small and they know their customers by name. There are some disadvantages of credit unions. One of the disadvantage is that you can’t just go to any credit union and open an account. One must be a member to open an account and to become a member you have belong to some type of organization or pay to the organization that …show more content…

The credit unions and the big banks “are both financial institutions that offer similar services (checking and savings accounts, auto loans, and mortgages” (Diffen, n.d.). They both help their customers to handle their money. Both financial institution’s deposits are insured. “The Federal Deposit Insurance Corporation (FDIC) is a government organization that provides insurance on deposits being held at banks. Just like the FDIC insures deposits in banks, the National Credit Union Share Insurance Fund, which is backed by the government, insures deposits in credit unions up to a total of $250,000 in individual accounts” (Diffen,

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