Tackling Common Credit Union Misconceptions

According to the latest research from the Credit Union National Association (CUNA), credit unions generally offer higher yields on savings accounts and lower interest rates on loans compared to banking institutions. In addition, credit unions are less likely to charge fees for services, and when they do so, credit union fees tend to be lower than banking institution fees. The combination of these two conditions translated into member benefits totaling $6.3 billion or $131 per member household for the 2011 fiscal year.

Despite these latest facts on the benefits of credit union membership, many misconceptions continue to persist amongst the general public, proliferated in large part by big banks, that credit unions cannot serve them.

This laundry list of untruths is perpetrated by big banks as a way of keeping customers in their service paying high fees. To dispel some of these, the following infographic lists the three most popular misconceptions going…

Infographic: Score Big By Tackling These Credit Union Misconceptions (Click Image to Enlarge)

Going into Overtime
But the list doesn’t stop there. Here are a few other misconceptions:

4. Location, Location, Location
   Another complaint commonly heard is credit unions don’t have enough locations. On the surface this appears to be true, but look a little deeper and you’ll see that most credit unions have joined forces and created shared branching networks that allow members to conduct most of their business at other participating credit unions as if they were at their own branch. This includes cashing checks, making deposits, transfers, cash advances, money orders, traveler’s checks and more.
   
   Generations members can visit our Locations page to locate a participating shared branching location or ATM in their area.
    
5. Switching is Complicated or Intimidating
   Many people don’t want to close their bank account because they picture the classic used car salesman scene. You walk in with one purpose and end up wasting the day being subjected to sales pitch after sales pitch on why you shouldn’t leave the bank. The good news, you don’t even have to show up.
   
   That’s right, you can simply send a letter with instructions to close your account. Better yet, the letter’s been started for you. Download our pre-drafted letter and simply provide your pertinent account information and signature, place the letter in a stamped and addressed envelope, and mail it to your bank.
   
   If you’re still unsure how to proceed, download our handy switch kit. It will walk you through the process of transferring your accounts.