Bank on It! March 13, 2012My MoneyOff

Lately, there’s been a buzz about credit unions. With the late-2000s financial crisis, many welcomed an alternative to big banks.

When it comes to where to keep our money, which one’s best for you? Banks and credit unions both offer basic financial services, but there are many distinctions.

“Credit unions are not-for-profit, so there are only two entities: you and the credit union,” explains Amy McGraw, VP of marketing for Tropical Financial Credit Union.

“A bank is for-profit, so there is the customer, the bank and the stockholder.” For small business owners, she says a credit union could be the better option.

They “offer merchant services and commercial lending,” and loan
decision-making is usually quicker at credit unions because they’re local. Plus, those in charge are from the same community.

Banks offer stability and more services with lower minimum balances. However, they depend on investors, which can result in a sudden rise in fees, says Kimberly Foss, Certified Financial Planner and founder of Empyrion Wealth Management.

Due to limited branch and ATM locations and fewer service options, credit unions lack the convenience of banks. However, they’re member-owned and often have better interest rates, lower fees and more flexibility in assessing women borrowers for loans, adds Foss.

If you’re thinking of switching to a credit union, First Financial Federal Credit Union’s Director of Business Development Kathleen Zimmer recommends

A Smarter Choice, which helps visitors find reputable branches nearby and offers testimonials from members.

Plus, Frederick News-Post shares facts on competition between banks vs. credit unions and advice from banking officials.

Bonus PINK Link: Find out how to save – at any age.

By Farren Davis

“It is not the creation of wealth that is wrong, but the love of money for its own sake.”
Margaret Thatcher

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