Are There Advantages to Keeping Your Money With a Credit Union Instead of a Bank?

The first thing to do is to learn something about each one. Then you can decide which is the better choice.

Banks
Broadly speaking, a bank is a regulated financial institution that provides a wide range of money services to its customers. In the United States there are many different types of banks.

• Savings bank: Most consumers are familiar with savings banks, which can be local, regional, or national. They provide easily accessible services to a wide range of consumers. Most have a focus on retail banking, including personal savings accounts, checking accounts, and loans.

• Co-operative bank: A bank that is owned not by stockholders but by its members, who are also customers of the bank. Co-operative banks are often created by persons who have a common bond. Co-operative banks provide their members with the same banking services as savings and loan banks.

• Mutual bank: Like co-operative banks, mutual banks are owned not by shareholders but by their customers.

• Commercial bank: Refers to a bank or a division of a bank that mostly provides account services for large businesses and corporations. Owned by shareholders.

• Community banks: These are locally operated financial institutions whose employees can make local decisions to better serve their customers.

• Community development banks: These banks specialize in providing financial services and credit to under-served markets or populations.

• Private banks: These banks manage the assets of wealthy individuals. A private bank may have minimum deposit amount of $100,000.

• Offshore banks: Located in nations with low taxation and regulation, most offshore banks are similar to private banks.

Banks make money from fees they charge for their services and from interest they make on loans.

Credit unions
Unlike commercial banks, which are business enterprises designed to earn a profit like any other business, credit unions are non-profit membership organizations, owned by their members, and are governed by volunteer boards. The first credit union was opened in 1844 by a group of weavers in Rochdale, England. It resembled a modern-day buyer’s club. Shares were sold to members with the intention of raising funds to buy goods at wholesale prices. The goods were then sold to members at below retail prices.

Choosing a bank or credit union
Consumers may wonder what the differences are between having a savings or checking account at a CU and a bank. A key benchmark is interest rates: how much you will earn when you save, and how much you will pay when you borrow. According to the Credit Union National Association (CUNA), rates offered by credit unions are sometimes better than the rates offered by banks. This is because CU’s are not trying to operate at a profit.

Are credit union deposits insured?
Most people know that the Federal Deposit Insurance Corp. (FDIC) insures bank deposits up to $250,000 per depositor per bank. Most CU belong to the National Credit Union Share Insurance Fund (NCUSIF), which protects CU deposits up to $250,000. If you join a credit union, make sure it is a member of NCUSIF.

Joining a credit union
Unlike banks, the law places limits on who can join a CU. A credit union’s “field of membership” is defined by its charter. Eligible people could be employees of a company, members of a church, students at a school, or members of an ethnic group. Chances are good that if you are interested in joining a credit union, you’ll be able to find one that will accept you as a member.

Cheap Car Loans From a Car Finance Broker

A car finance broker can give you a detailed and well thought advice on which financial option is best suited for you. He can also give you the time and effort to research on you requirements keeping all your parameters in mind. These are specialized people who deal with only one type of financial product.

Hence they acquire an in-depth knowledge and understanding of these products. They will consider all the requirements of the client and only then advice which option is best suited for the client. It is all about the piece of mind that one gets by depending upon a specialist.

Car finance is a competitive arena. There are various players and multiple products to choose from. Negotiation is also very important. A broker with his knowledge and in-dept understanding of the market can help us with his negotiation skills.

We always look for cheap car loan and that is even more the reason to consult these professionals. They have the insider knowledge of the industry and can even advise you on the best possible deals that are available in the market. Being an outsider to this industry you can never dream of getting to know who the best financiers are or what rates can be best negotiated from them. So, the help of an insider of the industry comes very handy to secure a cheap car loan.

Brokers have a tool called Car loan Calculator. They use it to advice the clients on the various short and long term effects of the loan, be it short or long term. This tool will also help you to decide on the loan after being fully aware of its various financial implications.

Car finance like all other finance needs various paper works. You will also have to show your income and other personal details. Now a day we hardly have time for ourselves or our family. Running around people to meet those obligations and formalities is the last thing in the world that we would like to do. A broker can help us in fulfilling those formalities to secure the loan.

Consult a broker, is not just about getting a cheap car loan it is also about getting an informed advice on the options available with us and getting the best possible deal. Think of your broker as a friend who can help you with his information of the best possible financiers and then further negotiate on your behalf. He can also guide you through the formalities and paper work. It is not being cheap it is being intelligent.