NEW YORK (1/28/16)--Millennials looking to start their financial lives on solid footing should turn to credit unions, personal finance website Bankrate.com advised.

“Start a lifetime of saving and borrowing at a credit union, which may cater to young adults better than a bank can,” the article said.

It cites four reasons why credit unions are a good choice:

1. Better rates on savings accounts or certificates of deposit. (See related story: CU rates have ‘upper hand’ over banks,’ says DepositAccounts.)
    
2. Less-expensive borrowing options. "When borrowing, one of the major needs for which people use financial institutions, credit unions have lower rates and lower fees," said Marco Pantoja, interim director of the University of Missouri Office for Financial Success in Columbia, Mo.
    
3. Free or low-fee checking accounts. A Bankrate survey found 72% of the nation's 50 largest credit unions offer free checking.
    
4. Greater personal attention. "The different relationship they have with their members allows [credit unions] to more intimately work with people who want to borrow," Pantoja said. "They will be more familiar with your specific situation, having done more personal business with you."

The story also suggested aSmarterChoice.org as a resource for potential members to find a credit union to join.

And, credit unions’ attention to personal relationships makes them even more attractive to millennials. According to a Facebook IQ study, 60% of young adults want their financial institution to be a partner or friend.

“Growing up in a world of financial instability, constant innovation and near-infinite information, millennials have unique needs and are not looking for their parents’ kind of bank,” the research brief said.

Millennials value a financial institution’s honesty, convenience and reward for loyalty. Their questions may overlap--for instance, “How do I save more money?” or “How much do I need for a down payment on a house?” Credit unions that address millennials’ situations holistically may resolve multiple problems and be viewed as the partner that will set the stage for long-term financial success.