Choosing Between a Credit Union and a Bank

What you put your money in depends on what matters to you the most. Banks and credit unions both provide savings accounts and certificates of deposit (CDs); some also offer mortgage and auto loans as well as investment services and small business accounts. When considering where to store your money, compare fees, minimum balance requirements and rates so you can find the most value from your money.

A major distinction between banks and credit unions lies in their differing operations; banks operate for profit while credit unions are non-profit institutions that distribute profits among their members. Credit unions tend to offer lower loan and deposit rates than banks as well as lower fees and higher yields on savings accounts or CDs. They may also serve local communities more directly which could give you a sense of continuity with your banking.

Credit union membership requires depositing funds into either your share or savings account and making regular deposits; this provides primary funding for lending and investment activities of the credit union and allows members a democratic say in how it is run; one member, one vote. Members also elect board and committee members and participate in other activities at their credit union.

Credit unions tend to offer more accommodating membership rules than banks, allowing individuals to join based on affiliation or group rather than income level, occupation or location requirements. They’re regulated by the National Credit Union Administration (NCUA), who guarantee deposits up to $250,000 per member.

Credit unions can be an ideal solution for first-time homebuyers who can qualify for low down payment loans or reduced mortgage interest rates, and anyone seeking to manage their finances in an ethical and responsible manner.

Universal Federal Credit Union was founded by Huntington teachers in 1935 to aid fellow educators with savings and borrowing options. Today, its field-of-membership includes everyone living, working, going to school, worshipping or volunteering within Cabell and Wayne Counties of West Virginia as well as Mason and Lincoln Counties in Ohio – with Barboursville branch as your convenient resource for achieving your financial goals.