In a society where purchases are made with phones and pieces of plastic, a savings account might seem a little bit retro – but contrary to assumptions, they so still serve very important purposes in this modern age. There are a number of benefits to keeping a portion of your holdings in a traditional savings account – especially when that savings account is with a Credit Union.
Your Money Will Earn More at a Credit Union
Yes, interest on bank accounts has been low for some time (although conversely, lending rates are also low), but they have been making a bit of a comeback of late. And, because credit unions function as financial cooperatives, they are in a position to pay better interest rates than banks do. It’s simple: your money will earn more in a credit union than it will in a bank.
Your Money Stays "Local" at a Credit Union
You might not be aware that one of the primary functions of a credit union is to lend as much of its assets as feasible. They also do this by making loans to entrepreneurs and start-ups who hail from the immediate vicinity. Therefore, when you have your savings account with a credit union, your money is being put to work growing the local economy. It is also helping your neighbors, as individual Austin-area borrowers can count on a credit union to be a sympathetic and receptive lender to a degree that larger banks can’t hope to match.
You Will Be Helping the Community
Apart from their lending practices, a further local commitment that credit unions make is to contribute meaningfully to their communities. For instance, Amplify’s vision is “to contribute to the sustainability of the region and create a positive social impact through giving and volunteerism. What makes this largesse possible? In part, savings accounts just like yours. By opening, maintaining and adding to a credit union savings account, you are participating in their vision of community involvement.
Your Money is Safe at a Credit Union
Your money is quite safe at a credit union because they are insured just like banks are, so that additional interest you’ll be earning comes with no additional security risk.
At a Credit Union, It's All About You
Remember this very basic premise: Banks have customers; credit unions have members. That means that you will have the peace of mind that comes from knowing that every decision a credit union makes is with your best interests at heart – and not the best interests of a group of strangers who own stock. Unlike many banks, credit unions are not publicly traded; they are member-owned. Having to answer to members – as opposed to customers and investors -- makes management much more deferential to their needs. Management can never take an “us versus them” approach to its members, because that adversarial dynamic simply does not exist at a credit union.
Interested in joining the credit union movement? Read on to learn more about the Benefits of Multiple Banking Relationships, or Common Question We Get About Credit Unions. Or, if you're ready to become an Amplify member, you can get started here.