People complain about credit unions as well, but the complaints are often fewer and for different reasons. It boils down to the member-centric model that credit unions follow, which generally makes them more people-friendly and accessible than banks. Let’s look at the most common benefits—and the downsides—of credit unions. A credit union is also more likely to have rules in place that are more forgiving if you overdraw your checking, or share draft, account or have a lower credit score. And you may find that credit union representatives are more willing to work with you if you find yourself temporarily out of work or in another difficult situation. The interest you receive on deposit accounts is higher at credit unions than at most local banks, too, though it may not be as high as those offered by some online banks. It may take some research, but finding a credit union that you can join is worth the effort. Many large companies offer memberships in credit unions, so start your search at your workplace. If you don’t work for a large employer that provides credit union memberships, you may need to look around your geographic area or online to find one. As you shop around for a credit union that meets your needs, make sure the one you choose belongs to the NCUA so your funds are protected. You may also have fewer options at a credit union than at a bank. Large banks usually offer a wide variety of checking and savings accounts, credit cards, loans, and investment accounts. You have more options to find the one that gives you the highest rewards and best suits your situation. Your local credit union may offer only one or a few types of each with no rewards. Another issue is that credit unions may not always stay abreast of cutting-edge banking technology, so your online experience may be limited to checking your balances and transferring funds between accounts.
