What Is a Credit Union?

It may seem like there are not many differences between a credit union and a traditional bank. While both offer similar services, the two financial institutions are far from interchangeable.

A closer look reveals that a credit union operates differently as well as provides unique benefits to its members. Below is a breakdown of how a credit union in Kentucky and a bank are unique from one another.

How Is a Credit Union Different?

Credit unions are nonprofit entities that prioritize their members’ financial interests. When you open an account and deposit money in a credit union, you become an owner-member.

On the other hand, a bank’s priority is to make a profit for its shareholders. For that reason, they charge higher product and service fees compared to credit unions.

Individuals can become a member of a credit union as long as they meet specific eligibility requirements. People may qualify if they live, work, worship, or attend school in a particular area.

Advantages

Credit unions are known to offer a more personalized member service experience. These institutions allow you direct access to people who make decisions regarding your potential auto or home loans and other transactions.

Credit unions also offer higher interest rates when it comes to deposits. That means members may earn more when they open a savings or checking account with a credit union instead of a traditional bank.

Also, credit unions offer some of the lowest interest rates on credit cards and loans. And while credit unions also charge fees on their products, they come at lower prices than banks.

Credit Union in Kentucky

Now that you know more about credit unions keep us in mind the next time you’re planning to deposit money or take out a loan. You can count on Members Choice Credit Union to provide a better experience for your financial transactions.

We are a trusted organization that serves the residents of the Eastern Kentucky area. You may visit us at any of our four locations in Kentucky. Reach out to us today for any inquiries.