Saturday, December 03, 2011

Switch To A Credit Union And Save Money

Small costs add up quick and most people are looking to save money these days in order to meet the demands of a dynamic economic environment. Whether it's a promise ring for girlfriend or diapers for baby, there is no end to the reasons people may have to try and tighten their wallet. One way to affect financial savings in your life is to switch to a credit union. Not only will you be supporting your local community and expressing distaste at corrupt big business banking practices, you can save yourself a lot of moolah in the long run. Here are some of the ways to save money with a credit union:

Better interest rates—Because credit unions aren't for profit they can take the money that banks would normally spend lobbying and buying off politicians and reinvest that money back into the members of the union, meaning you. This means significantly higher interest rates on checking accounts, savings accounts, and lower interest rates on credit cards.

No ATM fees—Find yourself irritated at the money you flush down the toilet on ATM fees, just because your bank's not around? Credit unions don't charge fees as long as you're withdrawing money from an ATM within your credit union network. This can save you up to $4 per withdrawal. Small beans but, hey, it's your money. Why should you have to pay money to have access to your money?

No account fees—Credit unions also charge fewer fees on accounts and loans. That means you're less likely to find anomalous charges on your statement at the end of the month and more likely to actually save money on that loan you're taking out.

Dividends—Many credit unions have made a regular habit of taking excess funds and paying them out to their members in the form of dividends. The Eastman Credit Union, for example, has paid out $37 million to its members in surplus dividends payments over the course of 12 years. That's an example of a financial institution bailing out its members, and not the other way around.

Additionally, many credit unions offer payday loans, car insurance loans, and a variety of other measures meant to help out community members. And your money is still insured up to $250k by the National Credit Union Administration. If you've been thinking about making the switch from a bank to a credit union, consider saving money as an extra incentive. Works for most people.

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