Many people are not really sure just what makes a credit union different from a bank. They look the same, inside and out. It is possible to get a Checking or Savings Account, a Debit or Credit Card, a Mortgage, an Auto Loan or a Home Equity Loan in Brevard in either a bank or a credit union. So does it really make a difference?
The first difference someone would quickly notice if they talked to customers of banks and of credit unions is that credit union customers tend to be passionate fans of their credit unions, stressing how much easier they feel their credit union is to deal with. Bank customers, however, often seem to put their banks in the ‘necessary evil’ category. Credit unions tend to be much smaller than banks and don’t have branches on every corner. (That does not mean credit union customers have to pay fees every time they use their ATM cards — most credit unions do not charge ATM fees to members of other credit unions.)
A bank is a profit-making business that invests or loans the money received from individuals as deposits. A deposit made to a credit union is actually purchasing shares of the company. Credit unions are ‘not for profit’ organizations (not the same as a ‘nonprofit’ like a charity). Most credit unions are very well-managed and profitable. ‘Not for profit’ means that the profits are used to enable credit unions to offer better loans and savings interest rates and lower fees than banks. Profits not used by the end of the year are returned to the members as dividends. While this was not the case previously, credit unions frequently offer online banking, bill pay, and other ‘banking’ services. One of the greatest advantages that a credit union has when compared to a bank is that banks have shareholders expecting ever-larger profits, forcing executives to concentrate on short-term strategies rather than on long-term stability as credit unions do. To learn more about available mortgage rates and more,
Community Credit Union of Florida (CCU) saves money for its customers by offering better rates and insured deposits. When many of their customers were suffering extreme financial difficulties during this economic downturn, CCU developed solutions that allowed their members to avoid bankruptcy and default. They also offer a variety of options for anyone considering a? to consolidate debt or for another purpose.
