Committing to the right financial institution, in many ways, can influence your financial success, which is why understanding the differences between banks and credit unions is essential to make the best possible decision for your present and future financial needs. While banks and credit unions both offer financial services, there are unique credit union benefits to consider that could position you for financial success. 
At Camino, we have been serving Montebello since 1941 with great rates, terms, and attentive customer service to put our members on track to a bright financial future. Read our blog to learn more:
Differences Between Banks and Credit Unions
When choosing between these two types of institutions, there are several key differences between banks and credit unions to learn. From the rates to the insurance, most credit union benefits stem from the fact that they’re member-owned and not-for-profit. So, without further ado, let’s get into it:
Better Rates
Rates are one of the biggest differences between banks and credit unions to consider when making this decision, which is also one of the key credit union benefits when working with a reputable financial institution like Camino.
Credit unions often have fewer fees and offer more favorable rates for members because credit union members own them, not shareholders. In other words, you reap the rewards because you are invested in credit unions.
This distinction offers a few advantages. For example, your savings accounts could earn more interest with a higher interest rate, which can improve your finances and help you save more money for your financial goals.
Interest rates on loans from a credit union, like a car loan or mortgage, are often lower, too. Lower loan rates provide greater financial control and confidence because you pay back less interest over time and save more.
Great Local Member Service
Another difference between banks and credit unions is the member experience.
Remember – credit unions are owned by members and not shareholders, meaning they cater to members, which is at the heart of credit union benefits. Credit unions provide superior customer service because their members are the focus.
One common misconception is banks are more accessible to members because they have more locations. While banks have more physical locations, credit unions still have a national network, so members can access their money anywhere nationwide with no fees.
When you partner with a respected credit union like Camino with strong community roots, you work with a team that is dedicated to your financial success, understands your unique financial needs, and provides exceptional member service to accommodate them.
Federal Insurance
Financial security is another important difference between banks and credit unions to understand when making this decision.
Credit unions are federally insured by the NCUA, which could be an important credit union benefit when it comes to your financial security. What does this mean?
Firstly, the NCUA is a government agency. Federal insurance means your deposits are backed and protected by the US government. With a credible credit union like Camino, your money is insured for at least $250,000.
Federal insurance could also reduce risk and offers greater protection against fraud and more financial resources for members.
Contact Us For More Information About the Differences Between Banks and Credit Unions
When you choose a financial institution, you want to make sure it is a match made in heaven, so understanding the differences between banks and credit unions is important to making the best possible decision. At Camino, there are several credit union benefits to consider that can help you build a bright financial future.
To learn more about our member benefits, visit us at caminofcu.org, call us at 800-835-3400, or fill out a form on our contact us page.