ALEXANDRIA, Va. (4/29/14)--For consumers who are dissatisfied with their bank, the Motley Fool website offers five benefits of belonging to a financial cooperative--also known as a credit union.
"There's no denying that many of the nation's banks are disappointing their customers, whether through high fees, poor lending availability, or bad service reputations," the April 27 article noted.
Here are the Fool's five benefits of joining a credit union:
Great rates. Reinvestment of profits also means better loan and savings rates, where credit unions commonly beat the top banks. In fact, Motley Fool cited the Credit Union National Association's comparison of credit union and bank rates for many most-used products.
"People helping people." The credit union difference--the philosophy of "people helping people"--is reflected in consumer satisfaction ratings. "Since the health and stability of any given credit union is dependent upon the financial health of its members, every cooperative has incentive to treat customers right and make sure their needs are met," the article noted. "Members are a part of the credit union community, not just an account number."
Flexibility. Credit unions typically look at an individual holistically, giving extra member service to someone who may not fit a rigid set of numbers such as a credit score.
Simplification. A bank's whirlwind of choices may unsettle a new account holder. Credit unions, by keeping it simple, "help members avoid difficult requirements and restrictions frequently experienced by even the most basic accounts at a megabank," Motley Fool said. Credit unions continue to offer free checking as well.
Quite simply, the article said, "Credit unions offer plenty of benefits that the nation's big banks can't touch."