At RBFCU, there are thousands of ways to meet membership requirements and join. Yes, you become a member to enjoy the benefits of a credit union. It’s free and easy, and well worth the few seconds it takes to apply.
Here are 16 reasons why it’s better to join a credit union rather than going to a bank:
1. The purpose of a credit union is to provide low-cost, often free, services to its members. RBFCU pays cash back to members — millions of dollars every year when you use your World Cash Back Mastercard® credit card. Banks return millions, but that’s called a dividend to outside stockholders or Wall Street investment firms.
2. Credit unions are for everyone — most people do not realize they qualify for membership. RBFCU has a proud heritage of serving our country’s Air Force, but you don’t have to be in the military to join. There are still eligibility rules, but they’re not as strict as you might think. Remember, at RBFCU there are thousands of ways to join, and we’ll help you find a way to qualify.
3. Free checking accounts are one of those free services credit unions offer to members. At RBFCU, we call it Really Free Checking. No monthly maintenance fees, no minimum balances. Really free!
4. Credit unions cut a lot of the banking fees, and we cut rates on loans as well. RBFCU offers loan rates that are significantly less than the national average.
5. Credit unions are embraced by government regulation and oversight, including the same levels of federally insured accounts that banks provide.
6. Credit unions are convenient and meet the needs of an on-the-go society. In addition to more than 60 branch locations, RBFCU shares an expansive network of ATMs across the country that charges no transaction fee. The RBFCU.org website and RBFCU Mobile app enable self-service banking when you can’t get to a branch.
7. You’re part of something bigger: The cooperative movement. RBFCU identifies itself as a “financial cooperative.” Co-ops are the ultimate democratic institutions. They are controlled by their members and always operate in their best interest.
8. Credit unions promote financial knowledge and awareness, with programs on money management for all ages. RBFCU has a Financial Literacy program that has mentored more than 10,000 school-age children and youth, and we also have partners that provide financial counseling for adults.
9. Credit unions live on Main Street, not Wall Street. As not-for-profit organizations, they don’t make risky investments. RBFCU’s investments and loans have been measured by analysts to outperform our peers.
10. Members, not outside stockholders, decide how their credit union is run and who runs it. There are more than 1 million members at RBFCU.
11. Membership is forever. If you were eligible to join a credit union based on your job, for example, you can keep your membership even if you leave that job.
12. One member, one vote. Whether you have $5 or $50,000 in your account, you have the same say as any other member in determining the direction of your credit union. RBFCU’s Board of Directors serves by volunteering their personal time.
13. Unlike banks, no credit union has ever needed a government bailout. The National Credit Union Administration (NCUA) gives RBFCU a top rating.
14. Credit unions are No. 1 in customer service, because their members are No. 1 with them. RBFCU annually receives ratings from independent analysts that go like this: five-star, superior, A+, highly likely to recommend, outperforms, lowest fee structure, and so on.
15. Credit unions foster a sense of community among their members. RBFCU’s annual meeting is open to members, and we have numerous ways for members to stay in touch every day.
16. Credit unions are socially conscious and reflect the values we live by. RBFCU is an active participant in national humanitarian programs and steps up to provide assistance to members and the larger community whenever disaster strikes.
Information in this article is general in nature and for your consideration, not as financial advice. Please contact your own financial professionals regarding your specific needs before taking any action based upon this information.
Cash back is an enhancement to the RBFCU World Cash Back and Business Select Mastercard credit cards and may be discontinued at any time. Program availability, rates and terms are subject to change.
FAQs
Better interest rates: Credit unions typically offer higher interest rates on savings accounts because they have lower overhead costs than banks. Similarly, they offer lower interest rates on loans. Customer service: Credit unions pride themselves on offering better customer service than banks.
What is one reason that a credit union is better than a bank? ›
Better interest rates: Credit unions typically offer higher interest rates on savings accounts because they have lower overhead costs than banks. Similarly, they offer lower interest rates on loans. Customer service: Credit unions pride themselves on offering better customer service than banks.
Why do people choose banks over credit unions? ›
People choose banks primarily because of the convenience of multiple branches across the country, along with better technology. On the flip side, people choose credit unions primarily because of discounted loan rates, higher interest rates and better customer service.
What is the major difference between banks and credit unions? ›
Banks are typically for-profit entities owned by shareholders who expect to earn dividends. Credit unions, on the other hand, are not-for-profit, member-owned cooperatives that are committed to the financial success of the individuals, families, and communities they serve.
Is it better to join a bank or a credit union? ›
Credit unions tend to offer lower rates and fees as well as more personalized customer service. However, banks may offer more variety in loans and other financial products and may have larger networks that can make banking more convenient.
Which is safer, banks or credit unions? ›
Like banks, which are federally insured by the FDIC, credit unions are insured by the NCUA, making them just as safe as banks.
What is more true about credit unions than banks? ›
"On average, credit unions pay higher interest rates on savings deposits than traditional banks. Credit unions are structured as non-profit institutions, allowing the reinvestment of profits back to members, including higher interest rates on high-yield savings and CDs," says Dr. Cherry.
What is the downside of a credit union? ›
Credit unions tend to have fewer branches than traditional banks. A credit union may not be close to where you live or work, which could be a problem unless your credit union is part of a shared branch network and/or a large ATM network such as Allpoint or MoneyPass. May offer fewer products and services.
Can the government take your money from a credit union? ›
Through right of offset, the government allows banks and credit unions to access the savings of their account holders under certain circ*mstances. This is allowed when the consumer misses a debt payment owed to that same financial institution.
What do banks offer that credit unions don't? ›
Aside from deposit products and lending services, many banks also offer credit products, home and auto products, investment products, and more. Credit unions offer most of the same products that banks offer, but they are members-only, nonprofit financial institutions.
Banks and credit unions are both safe places to keep your money when federally insured. However, it's important to note that the two types of financial institutions receive insurance through different agencies. While the FDIC secures bank deposits, the NCUA safeguards deposits at credit unions.
How much of your paycheck do you have immediate access to? ›
Generally, a bank must make the first $225 from the deposit available—for either cash withdrawal or check writing purposes—at the start of the next business day after the banking day that the deposit is made. The rest of the deposit should generally be available on the second business day.
What is the main difference of ownership between banks and credit unions? ›
A bank is owned by shareholders. A credit union is owned…by its members! This means a bank must turn higher profits to satisfy the shareholder demand for income. They tend to have higher and more fees, and they also charge more interest on loans as a result.
What is a reason you might use a credit union instead of a bank? ›
Choosing between a credit union and a traditional bank comes down to what you value in your financial services provider. If you prioritize high interest rates, low fees, community involvement, and having a direct say in your institution's direction, then a credit union is likely the right choice for you.
Do more people use banks or credit unions? ›
Banks are the most common type of financial institution in the United States, with 71,190 bank branches operating across the country in 2022, compared with 21,748 credit union branches.
What does it mean to be blacklisted by a bank? ›
Basics of Blacklisting: Blacklisting frequently results from poor money management, loan defaults, or a history of late payments. These bad ratings are reported to credit reference organisations, which lowers your credit score and makes it harder for you to get loans and even bank accounts.
What is the biggest advantage to a credit union? ›
Pros of credit unions
- Lower borrowing rates and higher deposit yields. Credit union profits go back to members, who are shareholders. ...
- Variety of products. ...
- Insured deposits. ...
- More personal service. ...
- Educational resources. ...
- Member-owned.
So, get comfy. This is going to be a comprehensive look at credit unions': Upsides, such as better rates, more favorable terms, superior service, and fewer fees. Downsides, like more limited accessibility, finite eligibility, and narrower product and service portfolio.
Why are credit unions better than commercial banks? ›
Since credit unions are member-driven and not for profit, members receive higher interest rates on savings, lower rates on loans and lower fees. On the other hand, profits made by banks are only distributed among their shareholders, meaning that the money banks make isn't returned to the people they make it from.
What is unique about a credit union? ›
NOT-FOR-PROFIT
Credit unions operate to promote the well-being of their members. Profits made by credit unions are returned back to members in the form of reduced fees, higher savings rates and lower loan rates.
