Over the past few days we have seen many consumers looking at how changes by their bank may influence their banking experience, as some fees are set to be levied against banking customers for use of debit cards, as one example, which has led some to question whether either taking their business to another bank or even a credit union will be more helpful, as there are some consumers who are considering moving from well-known banks as a result. Yet, this has been an opportunity where some credit unions are attempting to draw the attention of more consumers as there are some ways that consumers might be able to benefit from offers that these credit unions have and, in general, there are simple proponents of credit unions over traditional banks who feel that consumers will have a better experience when banking if a credit union is used.
While this is a highly opinionated area of discussion, many consumers opt to use credit unions, or at least have one account or more associated with these types of institutions because they can offer smaller fees on certain types of accounts, which is one area where consumers are currently being attracted to these banks, but there are also some credit unions that may offer higher rates on checking or savings accounts, and we have even seen businesses use credit unions in the past as a way to get a loan for their company.
Many of the more reputable credit unions are insured by the FDIC, and have become well-established in certain parts of the country to a point where they are on somewhat equal footing, in the eyes of some customers, as major banks. Yet, there are arguments that if the consumer does need to access their checking or savings account it could be more difficult if a localized credit union in their area is not located nationally in various states, but again there are arguments that some of these credit unions have a footprint nationally by either working with other branches or credit unions, as well as offering ATM locations.
Yet, this does not necessarily mean that consumers are always going benefit from a credit union’s checking or savings account opportunities, but this issue is one that has simply arisen as a result of changes in areas like free checking and debit card fees that have been occurring recently, and has led some customers to question whether they should continue their relationship with their bank. While some of these changes may have been minimal and definitely do not warrant a consumer closing out their account and moving funds to a new location, credit unions have not hesitated to point out their benefits and advantages while some customers may be considering a switch.
Consumers do need to remember though that these credit unions may require a credit check or may not come with rates on checking or savings accounts that are as high as their current bank, so advisers have cautioned customers who may be considering other financial institutions to not simply jump ship without doing research, as there may be better banking opportunities for consumers but zeroing in on one particular type of financial institution without understanding what all will be required of their customers, in terms of savings and checking, could lead some to a more problematic or less profitable change in their baking business if proper forethought is not given.