Credit Unions are non-profit financial institutions and offer higher dividends on deposit accounts than a bank. Membership is open to people who live or work in the same county the credit union is located. Regular Savings accounts have low minimum balance requirements, so opening an account is quick and easy. The minimum balance varies, but it is usually anywhere from five dollars and twenty-five dollars. Once you become a member, you can enjoy all the services a credit union has to offer. A credit union is owned by the members and is overseen by a volunteer Board. That gives it more flexibility than a bank that has shareholders.
In addition to Regular Savings, there are other savings accounts available at the credit union. A savings certificate can be opened with a minimum balance of one thousand dollars, and the maturity date can be set from one month up to one year. You can then renew when it matures if you prefer. IRAs, or Individual Retirement Accounts, are flexible, and you can choose the plan that suits your needs. A Christmas savings account allows you to deposit money whenever you want, but you cannot have access to it until a specific date. Many people use that type of account to save for holiday shopping to keep their stress level at a minimum. The interest is calculated on a daily basis and is directly deposited into your account(s) every quarter. Most credit unions, like Pearl Harbor Federal Credit Union, for example, have a savings program for young children. Kids can open a savings account to get in the habit of saving money, learn about the value of money, and learn how to set financial goals.
Loans from a credit union have lower interest rates than bank loans. Home, auto, business, and personal loans are offered for those who qualify. There are several options in each category. Personal loans include debt consolidation, tax loans, fully or partially secured loans, emergency loans, and an overdraft line of credit. Home loans include home equity loans, home equity line of credit, and second mortgages on the residence or investment property. Other services include online banking, mobile banking, notary services, and safe deposit boxes. .
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