Credit Unions vs Banks: 5 Major Differences

Credit unions are not-for-profit institutions owned and operated by members. Bellco Federal Credit Union highlights 5 major differences between credit unions and banks that could persuade you to develop a relationship with a credit union.

As a member-owned, not-for-profit federal credit union, Bellco FCU has been offering unique financial products and services to people and small businesses in our local communities since 1938.  Whether you are looking for an auto loan, credit card, personal loan, or a home mortgage or home equity loan, we have a product that will meet your needs.

Credit Unions vs Banks

When shopping for a financial institution, your decision should be based on what best meets your personal needs and the needs of your family. Here are five differences to consider:

  • Higher Rates on Deposits – In most cases, credit unions pay higher interest rates on deposit accounts, including savings and checking accounts, than you can expect to receive from your local commercial bank. Compare Bellco FCU’s competitive rates here.

  • Lower Rates on Loans & Credit Cards – Credit unions are often exempt from many state and federal taxes, resulting in a variety of benefits for members. With the money saved from tax exemptions, credit unions are able to offer lower interest rates than banks for personal loans, auto loans, mortgages, and credit cards, particularly if you have good credit. Compare Bellco FCU’s loan and credit card products and rates here.

  • Lower Fees – Credit union expenses are lower than traditional banks, so they are able to pass the savings on to members. Bellco FCU, for example, offers free checking accounts with no minimum balance restrictions, free online banking and bill pay, free eStatements, and free mobile banking.

  • Customer Focus – The bigger the bank, the less personal the attention customers tend to receive. Credit unions such as Bellco FCU, however, offer fast and personalized customer care. Our trusted and experienced professionals genuinely listen to your needs and offer solutions with the compassion of a true neighbor. If personal service is important to you, a credit union may be a better choice.

  • Eligibility – Banks are free to conduct business with any customer. By law, however, credit union membership is restricted to certain groups of affiliated people. If you live, work, worship, or attend school in Berks County, PA, you are eligible to become a member of Bellco FCU. 

Are You Eligible to Join Bellco FCU?

Joining Bellco FCU is a simple process; the investment is small and the rewards are huge. You are eligible to join if:

  • You live, work, worship, or go to school in Berks County, PA

  • You are in the immediate family (spouse, parents, children, siblings, grandparents) of a Bellco FCU member, no matter where you live

By opening a primary savings account with as little as $5 and following a few simple steps, you can become a member. And, once you join Bellco FCU, you are welcome to remain a member for life, regardless of where you live or work. Why not start your membership application today?

If you are looking for the best financial institution to meet your needs, consider the five main differences between credit unions and banks to determine which makes more sense. Then contact Bellco FCU to learn more about our services.