Why Use a Credit Union Rather than a Bank?
A Great Alternative to Banking
Making the choice to invest money in a credit union, rather than a bank, is often a decision that reflects cooperative values and community-building intent. Credit unions and banks offer a similar suite of products and services, but they are formed and run in very different ways.
Cooperative, Federally Insured, and Member-Owned
Both credit unions and banks are federally insured and state chartered credit unions and banks are regulated by the Vermont Department of Financial Regulation; a credit union is a not for profit entity that is owned by its members, while a bank is a for profit entity that is owned by external stockholders.
Because credit unions are not for profit, they are able to give back to their members through better rates on loan and deposit products (click to tweet). Credit unions are also cooperative, member-owned financial institutions. They often have a strong social mission and exist primarily to serve members (not stockholders).
Here are some of the biggest reasons people choose to invest in a credit union rather than a bank:
As a member-owner of a credit union, you have a lot of power in determining how your money is invested. You vote for the volunteer members of your Board of Directors (or volunteer as a board member yourself) and therefore have a voice in the decisions that are made regarding your money. You can also feel good about placing your money in a safe place, where profits are not lining the pockets of the stockholders, but are returned to you and your community.
VSECU - A Credit Union for Everyone in Vermont
People often think of credit unions as exclusive financial institutions. This can be true, but they probably are not as exclusive as you think. VSECU began as a credit union for State Employees but has broadened its reach to serve everyone who lives and works in Vermont. This means that anyone who lives in the state of Vermont can become a member. In addition, anyone who works in Vermont, even if they live in another state, can become a member. To establish membership with VSECU, all you have to do is open a Share Savings account.
Are you interested in joining VSECU, a credit union for everyone in Vermont?
About Blair Wolston
A native Vermonter and licensed financial advisor, Blair enjoys listening to the stories of his neighbors while helping them to make important financial decisions. A self-described "Solution Hunter-Gatherer" he starts with the basics and builds repeatable strategies that transport his clients incrementally and deliberately toward their goals.