Credit Union vs Bank: The major differences

If you’re thinking about switching from a bank to a credit union, you may be worried that the transition will be difficult or confusing. That’s normal! But the good news is most people find the change largely positive as they get acquainted with all the personal services offered by a credit union vs a bank.

The first difference you should be aware of (and happy about) is that credit unions are owned by their members, which means all decisions are made for the benefit of those members. If you’re fed up with banks trying to get as much profit out of you as possible, there’s an excellent chance you’ll be delighted by the way a credit union operates.

Personal service

Most big banks aren’t exactly known for their customer service, but credit unions usually shine in this category. When a customer service representative is dealing with a member, they’re dealing with one of the owners. That’s why credit union members enjoy VIP treatment regardless of the amount of money in their deposit accounts.

Members also don’t have to jump through hoops to get questions answered and can trust the ample advice provided. Credit unions typically offer plenty of resources to empower members to make the best financial decisions possible.

Better rates

One thing you’ll undoubtedly notice about credit unions vs. banks is the lower interest rates and higher dividends. Whereas banks make decisions based on profitability, credit unions focus on what’s best for the members.

Lower interest rates and higher dividends translate into more money in your wallet.

Ample accessibility

There’s no need to worry that a smaller credit union will mean fewer ATMs. Most credit unions (including Cobalt CU) network with other financial institutions to allow members to use other ATMs without additional surcharges.

Online account access and in-person or phone customer service are all par for the course with credit unions, so you’ll have easy access to your accounts anytime.

Making the switch

The logistics of actually switching aren’t difficult to manage, and you’ll find plenty of support along the way. We can help you move your accounts to Cobalt CU, plus change direct deposits and automatic bill payments. Get started online, chat with us through Video Banking, or visit a branch to open your account, and then prepare to enjoy the benefits of membership in a credit union vs. a bank.

Need help getting your finances under control? Download Cobalt CU’s Financial Audit Worksheet to get started.