As a choice of financial institution, nationwide credit cooperatives are becoming more popular. But many still do not understand what they are. The article provides an in-depth analysis of the Nationwide CU. It will also explain their functions and unique characteristics.
What Is a Nationwide Credit Union
It is a membership-owned institution which operates without profit. Credit unions serve their members, not shareholders, as traditional banks do. At the heart of credit unions’ uniqueness lies this fundamentally different approach.
Membership and ownership
Its structure as a membership is one thing that makes a creditunion unique. A nationwide credit union requires that members meet a set of eligibility requirements. These eligibility criteria are varied but can include such factors as geography, employment or membership in an industry.
When you satisfy the eligibility requirements to join a financial cooperative, you automatically become its member. In other words, you get to have your say on credit union matters and be able vote. A membership gives you the opportunity to access many different financial products. These include checking, savings and credit accounts.
Not-for-Profit Status
Credit Unions are non-profit, and therefore they have no interest in maximising profits for their shareholders. All surplus money is usually reinvested to improve the services and interest rates offered by credit unions. This attention to member interests is often what leads financial products that are more competitive.
Offerings
Similar to traditional banks, nationwide credit unions also offer an array of financial products. These services can include:
Savings Accounts. Credit unions can provide members with a safe and secure way to save, usually at competitive interest rate.
Checking accounts: Credit unions usually offer low cost or free checking options for their members.
Rates are flexible and competitive for personal loans as well as auto loans and mortgages.
Credit Cards: Many financial institutions offer cards with low rates, rewards and competitive terms.
Online and Mobile Banking Services: Just like traditional banks credit unions have online and mobile services to manage your account.
Nationwide Credit Unions – Benefits
Members receive a more personalized service at credit unions.
Less Fees – Credit unions have typically lower fees on services including overdrafts.
Competitive Rates – Members enjoy competitive interest rates in savings accounts as well as loans. This allows them to borrow and save at lower cost.
Credit unions tend to be deeply involved in their community, participating in numerous initiatives that are geared towards the local area.
As a conclusion, credit unions nationwide offer a unique way to bank, with members as owners. Profits are then reinvested for the benefit of their members. A credit union’s non-profit structure, combined with its personalized services and low rates makes it an attractive option for people who want to have a better banking experience.