5 Benefits of Choosing a Credit Union Over a Bank

When it comes to opening savings accounts, checking accounts, or looking for loan options, most people automatically think about big banks.

But actually, there are quite a few perks to opening an account with a credit union or taking out a loan through one instead of a traditional bank. While banks and credit unions are similar and offer many of the same services and products, there are some key differences worth knowing about.

Credit Unions Tend to Offer Lower Fees and Better Interest Rates

One thing that can really add up over time is all those banking fees. Credit unions often offer much lower fees on checking and savings accounts compared to big banks. In many cases, they even offer accounts with no monthly maintenance fees at all.

But it's not just about saving on fees. Credit unions typically offer better interest rates on savings accounts, too.

While the difference might seem small at first (maybe 0.5% versus 0.1%), it adds up over time, especially if you're saving larger amounts of money. It's one of those things where you might not notice the difference day to day, but after a few years, you'll definitely see the impact on your savings.

Read more: Savings vs Checking Accounts

It Can be Easier to Get Loans Approved at Credit Unions and They Often Have Lower Loan Rates

Life happens, and sometimes your credit isn't where you'd like it to be. Unlike big banks, which can be really strict about credit scores, credit unions can sometimes offer loans to people with lower credit scores. They tend to look at your whole financial picture rather than just a number.

This is where a credit union can really be an advantage. They might approve you for a loan that a bank wouldn’t, just because they’re not bound by the same rigid rules.

And when you do get approved, credit unions typically offer lower interest rates on loans compared to big banks. Whether it's for a car, a home, or a personal loan, those lower rates can save you hundreds or even thousands of dollars over the life of the loan.

Credit Unions are Not-for-Profit

This is a big one that many people don't realize. Big banks are businesses trying to make money for their shareholders.

Credit unions, on the other hand, are not-for-profit organizations. That means any profits they make go right back to the members, who are actually the owners!

Because they’re not focused on making money for outside investors, credit unions can offer better interest rates on loans and higher returns on savings accounts, like we talked about earlier.

Instead of sending profits off to shareholders, they use that money to benefit members through lower fees, better rates, and more personalized service.

Credit Unions are Member-Owned

When you open an account at a credit union, you’re more than just a customer. You become a member and part-owner.

That means that every member has a say in the decision-making and policies through voting rights and the ability to elect board members.

This ownership structure helps ensure that decisions reflect what members really need, not just what will boost profits. And since most of our members live, work, worship, or go to school right here in Acadiana, our choices are made with you and our local community in mind.

That local focus really shows in how you're treated and in the types of services we offer. It's banking that’s actually built around what you need.

Credit Unions Focus on Education, Not Just Services

Unlike most banks that mainly focus more on selling financial services and products, credit unions go a step further by educating their members on top of providing exceptional services.

Many credit unions share helpful resources and offer one-on-one guidance on things like budgeting, building credit, saving for retirement, or buying your first home. Instead of pushing products, we want to support your long-term financial health.

Conclusion

These are just a few of the many benefits of choosing a credit union over a traditional bank. We hope this info helps you feel more confident and informed when you’re deciding between the two.

If you're looking for a bank near you in the Acadiana area, we’d love to help! Stop by one of our branches in Lafayette or New Iberia. We’re here for you!