The chairwoman of the Credit Union of Texas talks about the distinct differences.

Dallas, TX, – Finding the right place for personal financial accounts is growing increasingly important in today’s fast-paced digital age. With automatic payroll, online bill payment and direct debit options, it’s not uncommon for people to never even hold a single dollar bill from their checks. Even so, people still want to know their money is safe, secure and working on their behalf. For many, credit unions are the perfect solution.

“Credit unions and traditional banks may seem similar at first glance, but they are quite different,” says the chairwoman of the Credit Union of Texas. “There are some distinct advantages credit unions can provide their members that banks simply may not be able to replicate for their clients.”

The biggest difference between the two financial institutions lies at their cores. Banks are for-profit entities that exist to earn profits for shareholders. Credit unions are not-for-profit cooperatives that exist solely to serve and benefit their members.

Due to their unique standing, credit unions are able to offer such benefits as:

• Higher interest rates on investments – Credit union members generally earn a higher interest rate on savings and investment products. The difference in earnings credit union members enjoy comes from the profits credit unions are able to channel back to their members. Higher earnings rates are one of the ways that occurs.

• Lower interest rates on borrowed money – Credit union members are also likely to enjoy lower interest rates charged to them on loans and credit cards. This reduction of rate is made possible because credit unions are not out to earn huge percentage profits for shareholders.

“Credit unions offer a unique alternative to traditional banking,” says the chairwoman of the Credit Union of Texas. “People seeking member-driven service and the potential to make their money work harder for them will find a good fit with a credit union.”

About Credit Union of Texas
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