PennyGem’s Elizabeth Keatinge discusses credit union vs. bank.
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LearningTranscript
00:00 (upbeat music)
00:02 Maybe the pandemic has prompted you
00:06 to make some changes to your finances.
00:08 Joining a credit union may be one way
00:10 to get more flexibility and have your needs served first.
00:13 See, credit unions are not profit-driven businesses
00:16 like banks.
00:17 They're governed by their members,
00:18 many of whom volunteer to serve as board members,
00:21 committee members, or in other roles.
00:23 According to US News and World Report,
00:25 credit unions have less rigid eligibility requirements,
00:28 lower interest rates, deposits are insured
00:30 the same way as banks,
00:31 and there are greater financial literacy resources.
00:34 There are cons, like limited financial product offerings,
00:37 and fewer physical branches.
00:39 As Forbes points out, there are also fewer ATMs,
00:42 and credit unions, although they have stepped up
00:45 their technology game, still lag behind banks
00:47 when it comes to their app and online features.
00:50 However, can the benefits outweigh the cons?
00:52 According to a Credit Union National Association report,
00:55 the average annual financial benefit
00:57 to a single credit union member is $85.
01:00 For households, it was $178.
01:03 HuffPost also points out that during the pandemic,
01:05 banks are tightening lending standards,
01:07 slashing credit lines, and making it tougher
01:10 for lower-income customers to get by.
01:12 (upbeat music)