10 Ways Credit Unions Are Different From Banks

  1. Credit unions are member-owned

Credit unions are not-for-profit organizations that are owned by their members. This means that credit unions are focused on the financial well-being of their members, rather than maximizing profits for stockholders.  Decisions are based on helping people, as opposed to a bank’s constant need to increase profit to appease stockholders.  Profits made by credit unions are returned back to members in the form of reduced fees, higher savings rates, and lower loan rates.

  1. Better interest rates

Credit unions typically offer higher interest rates on savings accounts because they have lower overhead costs than banks.  This also translates to lower interest rates on loans than banks.

  1. Lower fees and less fees

Credit unions generally have lower fees than banks, plus they generally have a smaller number of possible fees.  A joint research study by Dartmouth and UC-Davis of consumer bank and credit union account statements found that bank customers incurred an annual average of $111 more in annual fees

  1. More personalized service and benefits

Credit unions offer more personalized member benefits than banks.  Service is the first priority of credit unions.  In fact, credit unions have ranked higher than banks for more than 20 consecutive years across financial industry customer satisfaction surveys.

  1. Greater say in operations

Credit union members have a greater say in operations than bank customers because they share ownership in the credit union. Members can vote to elect board members who help make decisions about the credit union’s strategic direction.

  1. Community involvement

Credit unions often provide financial education and outreach to communities.  For example, PECU frequently sponsors area youth sports, bands, dance squads, and project graduation events.  What’s more, PECU gives the award-winning financial education app Zogo free to both members and non-members.  We’re proud to say that PECU Zogo users have earned 19 million financial literacy points.

  1. Cooperative

The cooperative structure of credit unions creates a cycle of mutual assistance for the common goal of the financial well-being of members.  One member’s savings become another member’s loan.  All credit unions operate under the motto and business practice of “people helping people.”

  1. Common Bond

Members of a credit union share a common bond, also known as the credit union’s “field of membership.”  You may be able to join based on your employer, family, geographic location, or membership in a group— such as schools, labor unions, or places of worship.

  1. Credit unions save you money

The Credit Union National Association estimates that the more than 139 million credit union members in the United States save around $8 billion per year over their banking counterparts through better interest rates and reduced fees.

  1. Shared branches

A shared branch is a credit union across town, or across the globe, where you can do your PECU business just like you are at your favorite PECU branch location.  There are 5,500+ worldwide shared branches.  Many PECU members tell us interesting stories about visiting shared branches in other states and even other countries.