The Benefits of a Credit Union vs. Bank
When it comes to managing your finances, choosing the right financial institution is crucial. While traditional banks may be the go-to for many, we’re here to show you why credit unions are the way to go. The benefits of a credit union go beyond just financial perks—they also extend into community support and empowerment.
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Not-for-profit, member-owned
Credit unions are not-for-profit and led by a volunteer board of directors. On the other hand, banks are for-profit and led by a paid board of directors. As a credit union member, you are also a part-owner. Credit unions are owned by members rather than shareholders, meaning your vote counts. Members can elect a volunteer board of members to manage a credit union and participate in decision-making processes at the annual meeting.
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Lower fees, better rates
Because credit unions are not-for-profit, profits can be returned through better rates, fewer and lower fees, and improved services. At banks, profits are returned to shareholders. While banks are created to generate profit for shareholders, credit unions provide members with a place to manage their finances at the best possible terms. For example, while large banks can require larger opening deposits of $25 to $100, MIT Federal Credit Union has a low minimum requirement of $5 for a Basic Savings account.
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Community investment
By joining a credit union, you are part of a community. Members typically share a common bond, such as where they live, work, serve, attend school, or worship. The benefits of a credit union extend beyond those just in your favor. At MIT FCU, we are dedicated to giving back to the MIT community and beyond.
When you bank with MIT FCU, your membership helps us foster meaningful connections and opportunities for the MIT community. Whether through scholarships or workshops, our mission is to create well-being through empowerment and financial opportunities. Beyond MIT, our team strives to uplift our local communities in Cambridge and Lexington through partnerships, volunteering, and charitable donations.
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Personalized and convenient
Your credit union will be familiar with your specific community needs. This involves tailored financial products and services and personalized communication. With data-driven insights, credit unions have a deep understanding of their unique member trends, behavior, and preferences.
A common misconception about credit unions is that they lack convenience in physical and digital forms. On the contrary, in addition to mobile and online banking, the benefits of a credit union include shared branching which allows for expanded access. MIT FCU has over 30,000 ATMs and 5,600 shared branches nationwide. For those in the Cambridge and Lexington areas, MIT Federal Credit Union has three branches and eight standalone ATMs.
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Safety and Security
Credit union accounts are federally insured by the National Credit Union Administration (NCUA) up to $250,000. As a government-backed entity, members can rest assured that their accounts are safe and secure. The NCUA regulates and oversees credit unions, ensuring they adhere to security standards and implement policies and procedures to safeguard member information.
Get the Benefits of a Credit Union Today
Experience the benefits of a credit union with MIT Federal Credit Union. MIT FCU serves over 35,000 members, including MIT employees, students, alumni, and select MIT-affiliated businesses. If you are an immediate family member, partner, or roommate of a person who qualifies for membership, you can also become a member.
If you don't belong to one of those groups, you can become a member by joining the American Consumer Council (ACC). Don't worry—we can take care of the process for you! Learn more about our history and apply for membership in minutes.
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