Why You Should Switch To A Credit Union in 2020

Published on January 24th, 2020

If you’re familiar with banking in Schiller Park, you know that you have many options to choose from including many banks and several credit unions.  However, if you’re unfamiliar with credit unions near Schiller Park and wonder why you should switch to one, there are several reasons why credit unions provide better banking.  

Banks vs. Credit Unions: The Differences

What makes banks and credit unions most different is the ownership structure and business model. Banks are often public institutions and are structured as for-profit organizations. This means that they have paid board members and shareholders who influence organizational decisions.

Credit unions, on the other hand, are not-for-profit financial institutions that are owned by their account holders, or “members,” and not some outside stockholders.  Furthermore, credit union members have voting rights to elect their volunteer board of directors. Because of this difference, credit unions tend to put their entire focus on the interests of their account holders/members because they are the owners. Credit unions do not promote and sell products that members do not need, nor do they open accounts just to make a profit.

How all This Affects Your Decision to Switch

Banks return their profits to their outside stockholders in the form of dividends.  As a result, banks tend to view their account holders as basically a revenue source.  Credit unions are different. Since they are not-for-profit, they return their profits to their account holders/members in the form of generally better rates and lower and fewer fees.  

ATMs and The Co-Op Network

A common misconception is that there is less accessibility to ATMs if you belong to a credit union.  As for Leyden Credit Union, although we have only one location, we do have three ATMs—one at the office, one in the Franklin Park Police Station, and one in Triton College.  In addition, we are part of the Co-Op Network where members have surcharge-free access to 25,000 Network ATM terminals across 50 states and throughout Canada at credit union branches, airports, supermarkets and convenience stores.  Approximately 5,300 7-Eleven stores in 30 states offer ATM access to 24 million credit union cardholders carrying the Co-Op Network logo.

Still Not Ready to Switch?

Even when you know you’ll save money banking near Schiller Park at a credit union, it can be hard to break out of your familiar habits. However, if you’re not sure about switching to a credit union yet, just try it out. Open an account at Leyden Credit Union and keep your account at the big bank. 

Once you’ve experienced the great service and competitive rates that only a credit union can provide, you’ll feel comfortable enough to make the complete switch for the new year.

To learn more on the difference between banks and credit unions, you can watch our video.

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