Monday, May 11, 2009
“Fed up with high fees, low returns and poor service at your bank? It may be time to shop for a credit union,” argues Kathy Kristoff, a longtime business writer. Credit unions are a “misunderstood” option in the banking world, but should be explored by consumers looking for a better way to sock their money away. Oftentimes these institutions offer higher rates for deposits, lower costs for loans and reduced fees for such things as overdrafts and checking accounts. Kristoff points out that by switching to a credit union, it’s possible to reduce a revolving credit card balance by 1 percentage point, and the interest rate on a new-car loan by 1.5%.
Many consumers still believe that they can’t join a credit union, which once were only available to those employed by a particular company or members of a union or church. But Kristoff explains that such restrictions don’t exist anymore, not since the passage of the 1998 Credit Union Membership Access Act, which has resulted in many credit unions extending their memberships to anyone living in a particular community.
And don’t’ worry about your money being safe, insists Kristoff. Just like banks, credit union deposits are backed up to $250,000 by the federal government, through the National Credit Union Administration, a sister agency to the Federal Deposit Insurance Corporation.
-Noel Brinkerhoff
Credit Unions Are a Good Alternative to Banks (by Kathy Kristoff, Townhall)
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