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.

How to Pick the Best Personal Checking Account for Your Needs

When it comes to keeping your money in a safe place, a bank is the best solution. With the help of their checking accounts, you can easily deposit and withdraw your money as you wish. Here are some must-dos when looking for a personal checking account that will fit your needs the best.

No Minimum Balance Required

One fairly newer addition for some banks is to require patrons to have a minimum balance in their checking account. Anytime a patron goes below this minimum balance, they’re charged a fee. You don’t want to be charged for using money that is yours. So, ensure that any personal checking account you’re looking for doesn’t require any sort of minimum balance.

No Monthly Maintenance Fees

Another fairly new fee that is being tacked onto many checking accounts is a monthly maintenance fee. The bank will charge you a small amount of money, usually $5 to $10, each month. 

Their reasoning is that they have to handle all the record-keeping for your account and other maintenance tasks. Not all banks charge this and you shouldn’t have to pay to have an account. After all, most banks make money by using your money to lend and invest.

ATM Fee Reimbursement

If you’re like most individuals, you use your ATM card to get cash when you need it. Each bank works with a specific network of ATM providers. Traditionally, if you went to an ATM that wasn’t a specific provider of your bank, then you would be charged a fee to withdraw cash. 

Now, banks are seeing how important it is for people to have access to ATMs without needing to pay fees. Therefore, many are offering ATM fee reimbursement. Any time you use an ATM that is not from your bank’s specific provider, a good bank will reimburse you the ATM fee that you were charged. So look for checking accounts that offer ATM fee reimbursement.

Ease of Check Cashing

In the digital world, people may tend to forget about check cashing until they’re written one. Since most people get direct deposit, they don’t consider checks when it comes to setting up a checking account, especially at an online provider. While a mobile deposit is possible for some, it’s not always accurate. 

Having a banking provider that is within your local area where you can physically cash a check is ideal. If you opt for an online checking provider, they’ll require you to mail the physical check. This could take up to a week to get to the bank and get you the money you need.

The best personal checking account will be different for everyone. Understanding some key factors to consider when choosing the right type of account is a necessity. The above factors should help you to narrow down your list of checking account providers.

Brooke Chaplan is a freelance writer and blogger. She lives and works out of her home in Los Lunas, New Mexico. She loves the outdoors and spends most of her time hiking, biking, and gardening. For more information, contact Brooke via Facebook at facebook.com/brooke.chaplan or Twitter @BrookeChaplan