Account Services - Community Credit Union Ltd (2024)

FAQs

What is the downside of banking with a credit union? ›

Credit unions tend to have fewer branches than traditional banks. A credit union may not be close to where you live or work, which could be a problem unless your credit union is part of a shared branch network and/or a large ATM network such as Allpoint or MoneyPass. May offer fewer products and services.

Credit Unions are required by law to restrict access to the groups they serve, but many have very simple requirements such as living in an area. A focus on “common bonds” is important in credit unions, which is why fields of membership single out particular groups or communities.

Credit unions tend to offer lower rates and fees as well as more personalized customer service. However, banks may offer more variety in loans and other financial products and may have larger networks that can make banking more convenient.

Experts told us that credit unions do fail, like banks (which are also generally safe), but rarely. And deposits up to $250,000 at federally insured credit unions are guaranteed, just as they are at banks.

Credit unions are insured by the National Credit Union Administration (NCUA). Just like the FDIC insures up to $250,000 for individuals' accounts of a bank, the NCUA insures up to $250,000 for individuals' accounts of a credit union. Beyond that amount, the bank or credit union takes an uninsured risk.

Generally, credit unions are viewed as safer than banks, although deposits at both types of financial institutions are usually insured at the same dollar amounts. The FDIC insures deposits at most banks, and the NCUA insures deposits at most credit unions.

There are a number of reasons why a bank or credit union may refuse to open a checking account. For example: A history of writing bad checks.

Some have argued that credit unions are inherently inefficient because of their one-member, one-vote governance structure.

Money held in credit union accounts is insured through the National Credit Union Administration (NCUA). Many types of accounts are covered by insurance such as checking, savings, certificates of deposit, money market accounts, and others.

Should I move all my money to a credit union? ›

You'll save more money.

Instead of paying shareholders a portion of the profit generated, credit unions return their profits to their member-owners in the form of better dividends on savings, lower interest rates on loans, interest-earning checking and fewer fees.

Like banks, which are federally insured by the FDIC, credit unions are insured by the NCUA, making them just as safe as banks. The National Credit Union Administration is a US government agency that regulates and supervises credit unions.

The FDIC and National Credit Union Administration (NCUA) oversee banks and credit unions, respectively. These federal agencies also provide deposit insurance. When a financial institution is federally insured, money deposited into a bank account will be secure even if the financial institution shuts down.

Through right of offset, the government allows banks and credit unions to access the savings of their account holders under certain circ*mstances. This is allowed when the consumer misses a debt payment owed to that same financial institution.

Credit unions are insured by the National Credit Union Administration (NCUA), and it offers coverage up to $250,000 per share owner, per insured credit union, for each account ownership category.

So, get comfy. This is going to be a comprehensive look at credit unions': Upsides, such as better rates, more favorable terms, superior service, and fewer fees. Downsides, like more limited accessibility, finite eligibility, and narrower product and service portfolio.