How a Credit Union Account Can Help You With Your Money

Once you have made the wise decision of choosing a credit union over a bank, you can start making other decisions that can put you on the right path to your financial journey.

It is up to you to check out what your credit union has to offer and how it can help you achieve specific financial goals. Let's take a look at some of the personal-finance options generally offered by credit unions and how they can work in your favor:

Personal Deposit and Checking Accounts

Your money is safe when it is deposited in a credit union account. Similar to the Federal Deposit Insurance Corporation, the National Credit Union Administration has the backing of the United States government to guarantee the safety of your funds up to $250,000. 

This will protect you even if the credit union goes insolvent or falls prey to a major cyber heist, and it is definitely safer than keeping all that cash at home.

Using Credit Union ATM Networks

By virtue of being organized as non-profit financial institutions, credit unions are more likely to offer low-cost access to automated teller machine networks. 

In some cases, credit union ATMs can be used for free; however, you have to check how much the ATM operator will charge you for the transaction, and this is often disclosed upfront.

Improving Your Credit Score

Not all credit unions offer this service, but quite a few of them have been expanding their offerings to include it. In essence, a credit union, for example, one like Credit Union of Denver, may extend you a friendly loan that features a small balance and a very comfortable interest rate. 

When this loan is linked to automatic debit from your account for a term of six months, the reporting made to the national credit bureaus will show that you made timely payments without interruption or tardiness, thus resulting in a nice boost of your personal credit score and history.

Compound Interest Savings Accounts

Putting your credit union money to work can be as easy as opening a high-yield savings account that pays compound interest on a daily basis. 

The interest growth on these accounts turns exponential over time as long as you make regular contributions in the form of deposits. Since credit unions are not looking to profit from their members, these savings accounts generally carry low fees and few penalties.

The personal finance options listed above only scratch the surface of what modern credit unions offer. Be sure to check with your credit union representative about loans and other financial products that can boost your personal worth.