Are you exploring your banking options? If so, you’re likely deciding between joining a bank or a local credit union. Both have pros and cons, but the main difference between banks and credit unions is that the former is profit-driven, while the latter is member-owned and driven. It’s a big reason why many consumers prefer banking at credit unions — especially when they begin to understand the full range of credit union benefits available to them.
In fact, according to a J.D. Power Credit Union Satisfaction Study, consumer satisfaction with credit unions is 74 points higher than the average overall satisfaction score for banks. In this post, we’ll discuss eight key benefits of credit union membership and how you can realize these benefits — and more — by joining Island Federal Credit Union.
1. Understanding Credit Unions: Member-Owned Financial Cooperatives
Unlike banks, where consumers are customers, credit unions have more stake in their relationship with their members. That’s largely because credit unions are member owned institutions, so consumers essentially have an ownership stake in this financial institution.
Credit unions return profits to their members in the form of lower fees, better interest rates, and enhanced services. Credit unions are also non-profit financial institutions, where any money made is reinvested into their members. Banks, conversely, are for-profit institutions.
However, credit unions typically have specific membership requirements that consumers need to meet to join. These requirements are often based on location or employment. See Island Federal’s membership requirements.
2. Lower Fees: Keep More of Your Hard-Earned Money
One of the key benefits of becoming a credit union member is that you’re privy to fewer and lower fees (or no fees), thereby allowing you to keep more of your hard-earned money. Remember, credit unions work to serve their members, and one way to do this is by offering services at competitive rates.
More specifically, many credit unions often offer local initiatives and lower fees as it pertains to:
- Monthly maintenance fees
- ATM fees
- Overdraft fees
At Island Federal, our credit union staff operates on a principle of transparent fee disclosure and a commitment to fee reduction. On monthly fees alone, banking with a credit union can save the average consumer several hundred dollars per year.
3. Higher Interest Rates on Savings and Deposits
While credit unions are known for offering lower fees, they’re also known for offering higher interest rates on savings and deposits. In addition to traditional savings accounts, we also offer a money market deposit account option for members looking to earn higher returns with flexible access to funds.
Current market averages for certificates of deposit show a trend of modest returns across different term lengths. However, at Island Federal, we consistently offer rates that significantly outperform these market averages, with our longer-term certificates providing even more attractive returns for our members.
Our competitive rates help our members’ money go further. Couple these better rates with the interest that you earn on interest (i.e., compound interest), and savings accounts at credit unions just work harder for your financial needs.
4. Competitive Loan Rates and Flexible Terms
While credit unions typically offer high interest rates on savings accounts, they offer lower comparative interest rates on loans. Whether it’s an auto, personal or mortgage loan, the best rates tend to be found at credit unions.
Furthermore, credit unions tend to have more flexible terms and repayment periods than banks.
5. Personalized Member Service and Financial Education
Credit unions are designed to provide exemplary service for members. Some of the value-added benefits credit union members experience include:
- Personalized financial guidance and support
- Education and financial literacy resources
- Financial counseling
At Island Federal, we make it a point to help our members make informed financial decisions and meet their financial goals via personalized guidance, counseling and education.
6. Cutting-Edge Digital Banking with Local Roots
Don’t mistake credit unions for being so small that they don’t have the resources to give their members a first-class experience. Island Federal offers online and mobile banking features to make transfers and other activities a breeze when you can’t get into a branch location. Our mobile banking feature allows members to:
- Pay bills
- Check and transfer balances
- View transaction history
- Make a mobile deposit
- Locate ATM or branch locations
- Real time fraud monitoring and prevention
Speaking of ATMs, Island Federal has a vast network of more than 125,000 fee-free ATMs located across the nation that members can access.
7. Community Involvement and Local Economic Impact
As a financial institution that’s dedicated to our members’ financial success, we’re also dedicated to the community organizations and charities that are important to them. Banking locally helps keep money circulating in the community — and we’re proud to further support the community via sponsorships, charitable donations and community initiatives that contribute to both economic stability and financial health.
Supporting Long Island Communities Since 1955
Island Federal was founded more than 70 years ago and is now among the top-performing credit unions in the state of New York. We serve more than 50,000 members and support the initiatives that matter most to them, right in the communities they live in.
8. Security and Safety of Your Funds
Your finances are safeguarded with national credit union administration (NCUA) insurance protection at Island Federal. The NCUA insures deposits at federally insured credit unions of up to $250,000 per depositor. We also offer fraud and identity protection and free credit monitoring to help you keep your finances and your identity safe and secure — all without worrying about unexpected federal taxes on your insured deposits.
Join Island Federal Today and Experience the Difference
To take advantage of low interest rates on loans, high interest rates on savings accounts, low fees on banking services and all the other benefits of joining a credit union, contact Island Federal today. Becoming a member is easy — contact us today to learn more and experience all the benefits of credit union membership.
FAQs
How is a credit union different from a bank?
The main difference between banks and credit unions is that banks are profit-driven, while credit unions are member-owned and driven.
What are the eligibility requirements for joining Island Federal?
For more information on eligibility requirements, be sure to see our “Becoming a Member” page, which is always updated with the latest qualifications.
Is my money as safe in a credit union as it would be in a bank?
Yes, your finances are safeguarded with NCUA insurance protection. Learn more about the NCUA and how they protect member funds at ncua.gov/consumers/share-insurance-coverage
Can I access my Island Federal accounts if I’m traveling outside the local area?
Absolutely. Our online and mobile banking allow you to access your funds no matter where you are in the country or world. Furthermore, you’ll have access to more than 125,000 fee-free ATMs and 6,500 courtesy banking locations across the nation
Do credit unions offer the same products and services as traditional banks?
Yes, credit unions offer all the same products and services as banks, but provide these services with several competitive advantages compared to banks.
How does Island Federal determine its interest rates and fees?
Credit unions weigh more than just the current market conditions when setting interest rates. They’ll often weigh other factors like operating costs, earnings from loans, federal guidelines and more.
Can businesses and organizations join Island Federal?
Yes, we offer business lending and business banking products to qualifying businesses and organizations.
What makes Island Federal different from other credit unions in the area?
We’ve been serving the community for more than 70 years and are one of the top-performing credit unions in New York. We offer the best rates, have no hidden fees and strive to deliver the best service to members.