People choose credit unions for several reasons instead of other financial institutions. Choosing one of the many Canadian credit unions is no different. Credit unions usually offer higher positive rates and charge lower interest rates, people are actual members instead of just clients, and they offer services that come free rather than being charged. As a member of a credit union, people have certain rights that appeal to them also.
Being a member of a credit union is different from being just another client at a bank or another financial institution. You gain privileges that other institutions cannot allow or afford their clients. Also, credit unions cannot refuse service to just anybody that they choose to do so.
Also, once you are a member of a credit union, there is a process through which the union has to go through to remove you from the union instead of just saying that you are no longer welcome. The member is even entitled to an appeal process in which he or she can explain why they think they should be allowed to stay as a member. All of this goes before a board before anything is finalized.
Financial benefits to joining a credit union are also a plus when join a credit union instead of a bank. When opening up a specialized account, there are fewer to no service fees seen on that account. Membership fees are also extremely low or nonexistent when joining a credit union which is different than if you became a client at another financial institution.
Banks are known for their interest rates. Well, at credit unions, they are even lower. This includes all of their loans such as home equity loans, house loans, and even car loans. Throughout the year this would save you hundreds of dollars and even thousands of dollars throughout the lifetime of the loan.
Credit unions also offer better interest rates on your deposit accounts so that you can earn more money throughout the year. Different credit unions will determine the amount that you earn in different ways. This amount could come from the average amount that you have in your account throughout the month or from the amount that is in the account at the end of the month.
People join credit unions for many different reasons. There are legal reasons and there are financial reasons. Each reason has its pros and cons that should be considered before you decide whether or not to go with a credit union or another financial institution.
Canadian banks website will help you find the bank of your choice.