Why Credit Unions Are a Better Option Than Big Banks

A drawing of lightbulbs on a chalkboard with one bright bulb glowing and "credit union" written underneath..

Making the choice between a credit union and a big bank can be challenging. However, while both institutions offer financial services, credit unions have emerged as a better option for many individuals – and communities. In this article, we will explore five reasons why credit unions are a better choice than big banks. 

1. They Have a Member-Oriented Approach 

One of the most significant advantages of credit unions is their member-oriented approach. Unlike big banks, credit unions are not-for-profit organizations owned by their members. Their primary focus is on the financial well-being of their members – rather than generating profits for shareholders.  

Credit unions focus on providing competitive interest rates, lower fees, and personalized services to meet the specific needs of their members. 

2. May Offer Lower Fees and Better Interest Rates 

Credit unions are known for offering lower fees and better interest rates compared to big banks. Because they do not have the same profit-driven motive, credit unions can pass on savings to their members – in the form of reduced fees and higher interest rates on savings accounts and loans. This can translate into significant savings for individuals and families. 

3. Provide Personalized Service 

Credit unions take pride in their excellent customer service and personalized approach. Unlike big banks, where customers can feel like just an account number, credit unions strive to build relationships with their members. They take the time to understand their members' needs and provide personalized solutions.  

This level of service creates a sense of trust and loyalty between credit unions and their members that is usually unparalleled. 

4. An Emphasis on Community 

Credit unions are deeply rooted in their local communities. Unlike big banks that may operate on a national or even global scale, credit unions are committed to serving their immediate communities. As member-owned institutions, credit unions prioritize reinvesting their resources and profits back into the local economy, supporting local businesses, and addressing the needs of the community.  

By banking with a credit union, individuals contribute to the well-being and growth of their local area. 

5. Greater Member Participation 

As a member-owner, each individual who joins a credit union has a say in how their credit union is run. Credit unions operate on a democratic principle, where members have the right to vote in elections, run for positions on the board of directors, and participate in decision-making processes. Greater participation gives members a sense of ownership and control over their financial institution, fostering transparency and accountability. 

The Bottom Line 

Credit unions, such as TwinStar, provide a compelling alternative to big banks. They take a members-first approach because they aren’t beholden to stakeholders, which also enables them to pass on savings to their members.  

By choosing a credit union, you can support an institution that prioritizes your needs, delivers exceptional service, and invests in the local community. If you want a banking experience that can be more affordable, personalized, and community-focused, credit unions are a clear winner.  

Become a Member of TwinStar Credit Union Today 

Not a TwinStar member, yet? Become a member today! Call us at 800.258.3115, join online, or visit your local TwinStar branch. Are you ready to experience the credit union difference? For more information about our community impact, visit here