Customers are always searching for the best deal when it comes to bank services and their money. Credit unions offer many advantages over regular banking services. Schools First Federal Credit Union is one of the largest credit card issuers in the country.
Why Use a Credit Union?
· Credit unions are non-profit institutions, which allows them to provide cheaper rates on loans and other banking services.
· They provide many additional services over regular banking.
· Customers are members of the institution and have a share in the benefits the union provides to customers.
· They offer many services of regular banks while providing additional services that banks just don’t offer their customers.
· Unions are subject to the same federal regulations as regular banking institutions.
· FDIC insured guarantees customers that their money is secure.
· Friendly one on one customer service.
· A larger variety of choices in loan and savings programs.
· Loan restructuring for members struggling through a financial hardship.
Disadvantages of Using a Union
· The bank links member accounts together to help secure a loan in case of default during a financial downturn.
· During economic downturns, the union might suffer hardships just like consumers.
· Automated Teller Machines are harder to find which means customers might be subject to out of network fees for using other banks’ ATMs.
· Loans are harder to secure without almost perfect credit.
What Schools First Federal Credit Union Offers
Checking and savings accounts are offered to members. Choices of several account options are available for every customer. Customers can open a checking account and receive free monthly fees and no balance requirements.
Free online banking and bill pay is available for members that open a savings account with the credit union. A savings account is needed to have membership in the bank’s credit union. Opening a savings account is the first step to becoming a member of the bank.
Home loans are available to all members whether they are first-time buyers or looking to refinance an existing home mortgage. Fixed mortgages and adjustable rate mortgages are available to members that want to find the perfect loan to fit their financial needs. Fixed rate loans are available at down payments as low as 3 percent for 10, 15 and 30-year term limits.
The union also offers adjustable rate mortgages, second home mortgages and rebates for participating real estate agents associated with the bank. Home equity loans allow members to borrow against the home’s value. Business leaders can depend on the bank to help furnish loans for investment purposes according to what capital the business owner has to assure the loan is paid back.
Insurance Options Available
Members of the credit union can receive adequate insurance to cover their loan needs at an affordable price to ensure complete coverage within the bank. Insurance options available include homeowner’s coverage that protects against weather related events and includes burglary, vandalism and fire protection.
Policies are available for renters to insure their personal belongings and liability protection. Earthquake damage policies and flood damage insurance can be purchased to cover those events in case it happens.
Life insurance policies cover many needs of members. Term life, whole life, variable and universal policies are available to members of the union. Accidental death and dismemberment is available to members as well.
Benefits for School Personnel
Credit unions realize how hard it is for the teaching community to make ends meet throughout the year. They offer extra benefits associated with teachers in mind. Summer off loans allow teachers to get up to 2 months non-payment allowance on an auto loan without penalty. This helps teachers while they are on summer vacation from work.
Computer and classroom loans are available for teachers to help them with cost of furnishing supplies needed to teach students during the school year. Schools First Federal understands teacher’s needs when it comes to retirement. They offer 403(b), Roth 403(b) and 457(b) plans to help the teaching community towards their retirement needs.
The teaching community will receive additional benefits in low cost loans and checking account privileges to help them make their yearly income last during the months that they are out of work.
The verdict: It makes good business sense for banking customers to use both regular banking services and a credit union on the side. When dealing with money, people need to make smart choices in how that money is being spent, saved and invested. It makes sense to consider using both a regular bank and a credit union to ensure you receive all the benefits of both institutions.
