Money Matters: Finding the Right Financial Institution Part III
Finding the Right Financial Institution
The past two weeks, we discussed choosing the right bank. During the month of November, we will take a much closer look at just how to do that in our “Money Matters” blog each Monday. As with any financial decision, it’s important to figure out what you want and need beforehand. There are countless banks to consider—some nationwide and some local—and there are also credit unions, which some people opt to use instead of or in addition to banks for their savings and credit needs.
How do Banks and Credit Unions Differ?
At one time, credit unions specialized primarily in low-interest loans and savings accounts, but not other services. But most have increased their range of services offered, with many now offering checking accounts, credit cards, student loans and mortgages. Some people opt to maintain savings accounts with credit unions, since they tend to offer higher interest rates, and a checking account with a traditional bank to ensure they have greater accessibility to ATMs and more. Deciding which type of institution will work best for you is a personal choice. Here are some of the main differences:
- Generally run by a group of investors with capital
- For profit
- Federally insured by the Federal Deposit Insurance Corporation (FDIC)
- May offer greater accessibility and a wider range of services
- Democratically controlled by members
- Not for profit
- Insured by the National Credit Union Administration
- May offer lower-cost services and higher interest rates on savings
- Money Matters: Finding the Right Financial Institution (wistatetreasury.wordpress.com)