What is a Credit Union and Why are They Beneficial?

Credit Unions differ from banks in that they are “not-for-profit” What is a credit unionorganizations instead of companies seeking to earn a profit. This detail means the way a union is run can change the way services are offered to its members. Some people prefer to use a credit union over a bank for the following reasons:

  1. Lower Loan Rates. Since unions aren’t looking to make a profit from you as a customer, they can offer you loans with less interest. In fact, a June 2014 study by the National Credit Union Association shows unions have an average interest rate of 2.64% while most major banks average at 4.78%.
  2. More Control. The structures of credit unions are cooperative, meaning they are owned and operated by their members. Once you join a union, you will be granted voting rights and may even receive benefits like conducting transactions at other branches or reimbursement for ATM use.
  3. Better Incentives. Since credit unions can run at a much lower cost, they can pass on their savings to members in the form of benefits like free checking accounts with no constraints of minimum balances or no extra charges if you happen to overdraft.
  4. Transparency. Because credit unions don’t need to make a profit, many people feel as though they can trust a union’s intentions more than a big bank’s. A credit union will always have its members’ interests at heart because they are the ones at the core of the operation.   

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When you work with a PEO company like PER, we can assist with the grueling tasks that HR presents for your business. We offer access to a credit union for all your employees, so they can enjoy all the benefits of being a member. Let us assist with the HR headaches so you increase your focus on what is really important to your company. To learn more about the services we offer, call us today at 888.599.4990.


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