Choosing a financial partner to help you manage your money is a big decision. The list of considerations can be, quite frankly, exhausting. But luckily our President and CEO Kim Sponem is here to help with some basic information to help you understand the benefits of joining a credit union versus a bank.
A lot of my friends have joined a credit union and are really happy about it. They say it’s run differently than a bank. Is that true? Isn’t a checking account a checking account?
Your friends are right. Credit unions are definitely run differently than banks. Because we have similar products and services, people sometimes assume credit unions are banks. But we’re not. Credit union owners are everyday people who do business with us (members). That difference in structure impacts everything we do for consumers and our communities. As part of the cooperative business sector, credit unions, no matter how large or small, share our profits with our members.
Both banks and credit unions have a responsibility to financially benefit their owners. The difference is in the ownership. So, what does that difference mean for you?
Do More With Your Money
For the more than 3 million credit union members in Wisconsin, a common experience is saving money. The Wisconsin Credit Union League reports that in 2017, Wisconsin credit union members saved $240 million over the average cost of banking with for-profit banks. Of that, $15 million was in lower fees, $205 million in lower loan rates and $20 million in higher savings rates. At Summit, our members saved $21.7 million in 2017, an average savings of $274 per member household.* That’s a lot of savings.
Get Exceptional Service
Credit unions and their employees understand that we exist for our members’ financial well-being. We enjoy helping members turn financial goals into reality, such as through our free financial education with programs like Project Money, as well as our Money Smarts blog and free online tools. At Summit, our commitment shows in our service and in our innovations to make managing money easier. Summit members often tell us they appreciate our friendliness, how easy we make it to do business with us no matter where they are and our honest, insightful advice to help them take control of their money.
Help Build Stronger Communities
Credit unions strengthen communities through empowering members and families with the savings and tools to be financially well. Many also reach out to the community and provide funds, volunteers and financial education. There are 100 credit union branches in high schools in Wisconsin. Summit has three in Madison that help teach students to better manage their money from a young age. We did not open these because they are profitable to the credit union (they aren’t). We opened them to provide teens with money management skills to impact their entire life, which strengthens communities for everyone’s benefit.
It’s exciting to be part of a principled business focused on serving members and building strong communities. If you decide to do business with a credit union, you will benefit yourself, the other members of the credit union and your community. That’s the credit union difference.
* Average primary savings over the cost of doing business with a for-profit banking institution in WI.Your savings may vary based on your creditworthiness and other factors.
