If you’re following along, you know this week I am moving my accounts from Bank of America to a local Credit Union. I am doing this for a number of reasons, as part of my #FinancialFitness2018 New Year’s Resolution.
Here is my listicle! 3 Reasons Why I’m Switching to a Credit Union
1) Buying Local: By putting my money in a credit union, I am not only keeping my money local, I’m helping to support other local businesses. By having my assets there, the credit union is better able to utilize that money for loans. The loans stay local, so the money is invested into the community. So, instead of money going to fund DAPL, it is helping people in my neighborhood to buy a car, a house, or start a business.
2) Membership Owned: A credit union is a co-op. It is owned by its members, and is there to serve its members. Since its not owned by shareholders, they’re able to look out for the interests of its members first. One of the explanations given by Bank of America for why its raising its fees on the accounts with the lowest balances was because they had a responsibility to their shareholders.
3) Lower Fees: Because credit unions are not for profit, they’re able to keep their fees low. While Bank of America have to generate a profit for their shareholders, credit unions do not. They pass through profits in the form of free or inexpensive services to their members.
I reached out to my friend and colleague Meagan Lynn Weatherby from Cooperative Federal, an amazing credit union we have here in Syracuse, for her thoughts on why credit unions are a better choice than banks, and she shared her thoughts! “To me, the best reason to be a part of a credit union is because all credit unions are cooperatives. That means they operate for the mutual benefit of their members — not just to make money for shareholders — and they are owned and democratically controlled by their members.”
Very excited about making the switch tomorrow! Stay tuned!