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Credit Unions: An alternative to commercial banking

International Credit Union Day
Thursday, October 18, 2018

Celebrating the history of credit unions

International Credit Union (ICU) Day has been celebrated on the third Thursday of October since 1948.

The day is recognized to reflect upon the credit union movement’s history and to promote its achievements.

It is a day to honor those who have dedicated their lives to the movement, recognize the hard work of those working in the credit union industry and show

members our appreciation. This year’s theme, “Local Service. Global Good,” emphasizes the benefits of cooperation among credit unions worldwide.

“Cooperation within the financial cooperative industry has historically been considered a philosophical principle,” Brian Branch, World Council of Credit Unions president and CEO, said. “But today there is a market-driven business rationale for finding cooperative solutions to consumer demand. It is fitting that we celebrate this year’s International Credit Union day with this recognition — that credit unions uniting for the good our consumers truly is a better way of doing business.” 

The ultimate goal is to raise awareness about the great work that credit unions are doing around the world and give members the opportunity to get more involved.

Credit unions and associations throughout the world celebrate the day with open houses, contests, picnics and parades.

Top ten reasons to join a credit union

Credit unions exist to help members. That’s why they often have better interest rates on both loans and deposits.

Commercial banks are Their sole purpose is out how to make more money their customers. Interest rates are often very low (or nonexistent), loan rates are often competitive, and they always try to sell you new products because you are a customer.

Credit unions, by law, have membership requirements. But those requirements are usually quite simple, and there are many credit unions anyone can join regardless of their geographic location or employer.

Here are the top 10 reasons to join a credit union:

1. Low minimum balances.

Credit unions generally require a modest minimum balance to open an account. As little as $5 may be all it takes to join and start accessing a credit union’s services.

2. Better rates of return on savings.

Credit unions provide higher interest rates on basic savings (share) accounts, interest-bearing checking accounts and CDs. Many credit unions pay “bonus” dividends if the credit union has a

good year.

3. No, or low-fee checking accounts and ATMs.

Many Americans spend hundreds of dollars per year on checking account fees, often because they can’t meet minimum balance requirements. Credit unions give fee than typically charged by large banks. Credit unions also have lower ATM charges and sometimes connected to surcharge-free networks.

4. Lower interest rates on credit cards and loans.

This may be the biggest advantage for young families who are just getting started and need to stretch their dollars as much as possible. From credit cards to car loans, credit unions consistently offer lower rates, better terms and lower fees. DataTrac, a national interest rate-tracking service, finds that rates on car loans offered by credit unions average 1.5 to 2 percent lower than banks. 

5. Accounts insured by the U.S. government.

Credit union accounts are insured up to $100,000 by the National Credit Union Share Insurance Fund, just as the FDIC insures bank and thrift deposits of up to $100,000. Some credit unions also offer additional private, supplemental coverage up to $250,000 per account.

6. Competitive mortgage rates and equity loans.

More credit unions are offering extremely competitive interest rates on home mortgages, equity loans and lines of credit. Not only are the rates low, but closing costs generally are much lower than those paid through a conventional lender.

7. Credit counseling.

Credit unions know that it is sometimes difficult for families to meet their obligations, so they have established extensive programs to help their members get back on their feet.

8. A voice in your credit union’s operations.

As a member-owner of your credit union, you are entitled to vote on credit union business and elect new board members. You can also serve on your credit union, you are entitled to vote on credit union business and elect new board members. You can also serve on your credit union’s volunteer board or one of its committees.

9. Once a member, always a member.

As long as you maintain an account, you will always be a member of your credit union, even if you move or are discharged from the service. Most credit unions today offer any number of services online or by telephone, so convenience is maintained.

10. Community outreach and service.

Among the many special services credit unions provide are financial counseling, first-time loans to members with credit problems, low-cost alternatives to check cashers and payday lenders and outreach to underserved neighborhoods.

San Marcos Record

(512) 392-2458
P.O. Box 1109, San Marcos, TX 78666