The 4 Biggest Credit Union Myths

International Credit Union Day

posted October 19, 2017 in Blog

Do you think credit unions are just like banks? There are some important differences that can make a local credit union like GICU a far wiser choice, especially in these days of skyrocketing fees and hidden charges. To celebrate International Credit Union Day, we’d like to clear up the four biggest myths about credit unions.

They aren’t big enough.

There are big and small credit unions, but just like banks, your deposits at a credit union are insured by the federal government up to $250,000 by the NCUA.

It will be hard to access my money.

Credit unions have access to a network of 30,000 free ATMs and 5,000 shared branching locations, making it easy for you to access your money anywhere.

I can’t join.

Anybody can join a credit union. You may be eligible based on your employer, where you live, or your family, as most credit unions allow members’ families to join. Credit unions are also democratically-controlled, not-for-profit institutions that are owned by the people they serve, not by a few shareholders.

Click here to learn more about membership at Greater Iowa Credit Union.

They don’t offer as many perks as banks.

Credit unions offer the same financial products as banks—checking accounts, debit and credit cards, online banking, IRAs (individual retirement accounts), and home and auto loans—but because they’re not-for-profit, they often offer better rates than banks. Through the first half of 2016, according to data collected by the Credit Union National Association, credit union members saved $9.3 billion over what they would have paid at banks: $1.9 billion through higher yields on savings, $1.2 billion on lower fees, and $6.2 billion on lower loan rates.

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