The Differences That Set Credit Unions Apart
On the other hand, banking institutions are generally for-profit ventures. Often publicly owned and driven to meet shareholder demands, these institutions exist to earn money and capitalize on those earnings.
The chairwoman of the Credit Union of Texas talks about the distinct differences.
Dallas, TX, – People preparing to open personal financial accounts, such as checking or savings, have two main options at their disposal. Credit unions and traditional banks can each serve their purposes very well, but it is their differences that set them apart. For some, the benefits only credit unions can provide make this choice a sound one for personal finances.
“Credit unions are designed from the ground up to be different than traditional banking institutions,” explains the chairwoman of the Credit Union of Texas. “Credit unions are not-for-profit cooperatives that exist solely to serve their members.”
On the other hand, banking institutions are generally for-profit ventures. Often publicly owned and driven to meet shareholder demands, these institutions exist to earn money and capitalize on those earnings. While they do so by serving customers well, their underlying mission may prevent them from offering some of the benefits credit union members may enjoy.
“Credit unions tend to channel profits back into operations and toward benefitting membership directly,” explains the chairwoman of the Credit Union of Texas. “This might translate to lower interest rates on loans and credit cards. It may also represent higher earnings on savings for credit union members. In some cases, it could mean easier access to a personal line of credit or loan. The bottom line for a credit union is member services, which makes the focus quite different.”
Credit unions are different by design. If it’s time to establish personal financial accounts, membership can offer advantages consumers may not be able to find elsewhere.
To find out more about working with a credit union to establish personal financial accounts, visit the Credit Union of Texas online at www.cutx.org.
About Credit Union of Texas
CUTX is owned by its members, and operated in accordance with the laws governing credit unions in the State of Texas. As a member, your deposits are federally insured by the National Credit Union Administration, a United States government agency.
CUTX (Credit Union of Texas) committed to take your security very seriously, whether that means the security of your assets or your personal security. More service. More value. More solutions to your financial needs. That's why we're here.
Jul 30, 2017