After the financial collapse in 2008 people still have difficulty trusting the big banks. This isn’t hard to understand since it was the banks who were largely responsible for the largest financial crisis in modern times. A bank is also a profit driven institution and their aim is to generate profits for shareholders. They have high fees and take some pretty big financial risks with your money. There is an alternative and it is time to move your business accounts to a credit union. They usually have lower fees and interest rates. Those aren’t the only benefits to moving to a credit union.
Checking Account Fees
Most banks charge you a pretty penny for the ability to have a bank account and use their services. Everything costs from monthly maintenance fees to overdraft protection. On the other hand Credit Unions have fewer and lower fees. They also don’t make you keep as much money in your account to avoid fees.
Lower Interest Rates
A Credit Union is a not for profit business and that allows them to offer a lower interest rate than a traditional bank. Interest is one of the largest sources of profit for a bank and they charge the highest rates they can. Credit Unions are about serving the community at large, profit isn’t as big a priority. Switching to a Credit Union can allow you to reduce your interest rates which will save you money. There are many banks who will find your business loan too risky to lend to whereas a Credit Union may have no problems. Credit Unions believe in serving the community and want to see local businesses thrive.
Better Customer Service
Commercial banks have a management team and a board that they answer too, this drives them to increase profits often at your expense. You can see increases in account charges, higher interest rates, higher fees and more fees added to your services. The business model doesn’t leave much in the way of providing customer services to their customers. Credit Unions have better incentive to give you better interest rates, fewer service charges and much better customer service. That turns into cheaper loans when your business needs it.
If you aren’t convinced by now that your business can be better serviced by a Credit Union then why not drop into a branch and talk with one of the managers. Then can give you an accurate idea of what they can do for you and what it will cost you. You may be surprised by how much you can save.