Why You Need a Credit Union Account
This blog post by Jim Wang was recently published online by U.S. News and World Report and discusses the many advantages credit unions have over banks. Wang notes that “credit unions have been around for quite a while but it hasn't been until the last few years, after people have grown wise to the excesses of the too-big-to-fail commercial banks, they've really grown in popularity.”
He also points out the biggest difference between credit unions and commercial banks—that “credit unions work for you, banks work for their shareholders. Commercial banks, especially those that are publicly traded, are obligated to act in the best interests of its shareholders. Credit unions are also obligated to act in the best interests of their shareholders. The difference is that the shareholders of a credit union are its customers.”
Wang goes into more details about the other advantages of credit unions, including their smaller size, better service, better rates, lower fees, federal guarantees, and the fact that members can actually join the board of directors.
Although a few downsides are mentioned, Wang concludes by saying that “if you've been searching for a way to sever your ties to a commercial bank, consider credit unions.”
Jim Wang writes about personal finance at Bargaineering.com. Read the complete article at http://money.usnews.com/money/blogs/my-money/2011/04/26/why-you-need-a-credit-union-account.