It used to be that once you chose a primary financial institution, you continued to do keep your bank accounts, loans and other financial instruments in that one bank. That was, until you moved to another community. Today, with a number of very large banks that have services across the United States, you can stay with the same “Bank” even when you move across the country.
But, after the 2008 Recession, many people began to rethink their commitment to many of the same organizations that caused the recession and then asked for a bailout from the rest of us. Unfortunately, many individuals don’t realize that there is an alternative that has many advantages over a standard “Bank” for their financial security and safety. And the advantages are much more “earth shaking” than what you might think.
Banks are owned by investors who often have huge holdings. The banks are under pressure from these investors to give a solid return on their investment. Thus the pressure to build large profit margins is very great.
By contrast, Credit Unions are owned by the members of the credit union. Each member, regardless of how much money or business they give the Credit Union, has one vote. These votes are used in annual business meetings and to elect a “Board of Directors” which comes from the membership. Profits from the Credit Union are then returned to the members in the form of lower interest rates on loans, higher interest rates paid on interest-bearing accounts. A credit union does have some requirements about who can be a member. In Hutchinson Kansas, individuals have the option of choosing a Hutchinson Bank or the Dillon Credit Union, which can serve anyone who lives, works or worships in Reno County many of the surrounding counties.
Deposits are insured at a Credit Union, just as they are at a bank, so your funds are just as safe in a Credit Union as they are in a Bank. The main difference is that the Board of Directors of a Credit Union cares about YOU, while the Board of Directors at a Bank care about getting a return on their investment.
Want an easy way to “Stick it to the man”? Quit using banks. Start using Credit Unions.