The Advantages of a Credit Union Membership

When it comes to banking, most people opt for a traditional bank. However, a credit union can be a great alternative. Credit unions are not-for-profit institutions that are owned and operated by their members.

This means unlike banks, they don't exist to make money for their shareholders. Instead, they focus solely on their members and help them achieve their financial goals. 

In this blog post, we'll explore the many advantages of a credit union membership.

Better Fees and Interest Rates

When managing your finances, finding an institution that offers better fees and interest rates is key. This is where credit unions come in, offering a refreshing alternative to traditional banks. 

Their reputation for lower fees is well-deserved, with many credit unions waiving ATM and overdraft fees. This can make a significant difference in your finances over time. 

But what sets credit unions apart is their commitment to offering better interest rates. By offering higher interest rates on savings accounts and lower rates on loans and credit cards, credit unions help their members keep more of their hard-earned money. 

So, if you're looking for a better way to manage your finances, consider joining a credit union today.

Personalized Customer Service

Imagine walking into a financial institution and being greeted by name and asked about your family, your job, and the financial goals you have set for yourself. 

This may sound like a distant dream for many, especially those who have grown tired of the impersonal experience banks tend to offer. However, with credit unions, such as the Credit Union of Denver, customers receive personalized attention thanks to their smaller size and focus on building relationships with their members. 

Unlike anonymous banking giants, credit unions take the time to get to know their members’ financial situations, and the same representative often works with customers over time. 

With the more tailored approach of personalized customer service, credit unions offer a refreshing alternative to standard banking.

Access to Financial Opportunities

Access to various financial products is essential for anyone looking to take control of their finances. Credit unions have become popular for those searching for more options due to their extensive range of services. 

Credit unions have everything from savings accounts to loans and credit cards to investment opportunities. They often team up with other credit unions, giving their members even more benefits. 

Opting for a credit union over a traditional bank can give you greater financial flexibility and access to more financial products than you may have thought possible.

Community Involvement

Community involvement is an essential aspect of credit unions that sets them apart from other banking institutions. Unlike traditional banks, credit unions operate solely to benefit their members, so their focus is always on what is best for the community. 

This approach to banking enables credit unions to be deeply involved in their local communities, supporting them in various ways. They might sponsor locally organized charities, host seminars on financial literacy, or even provide loans to their members for small business ventures. 

Through these efforts, credit unions help foster a sense of interconnectedness in the community and encourage its growth and development. 

This community involvement also strengthens the trust and loyalty between credit unions and their members, making them a valuable part of the community.

Community Ownership

Community ownership is a fundamental aspect of credit unions. By becoming a credit union member, you are a customer and a co-owner of the institution. 

This unique structure means that every member has a voice in the credit union's operations. A small group does not make decisions of investors seeking profit but by elected board members representing the entire membership. 

It's a refreshing alternative to traditional banks, where profits are prioritized over customers' needs. Community ownership ensures that credit unions are always working to benefit their members rather than a select few at the top.

Final Thoughts

Credit unions offer many advantages over traditional banks. From personalized customer service to lower fees, credit unions put their members first in all finance matters. 

Moreover, they feature a more democratic approach to decision-making, are highly involved in their communities, and provide their members with access to a wider range of financial products. 

So, consider a credit union membership for all your banking needs.

Bank or Credit Union? How to Pick the Best One for You

Whether you are looking to open your first savings account or take advantage of a loan from a financial institution, it can be difficult to decide between a bank and a credit union.

Both offer different services and products with varying fees and interest rates, so it’s important to know what sets them apart to make an informed decision. 

Let’s look at some differences between banks and credit unions that can help you pick the best one for your needs.

Services Offered by Banks and Credit Unions

The first difference between banks and credit unions is what they offer. Banks have more services than credit unions typically do. 

This includes investment options such as CDs, bonds, stocks, mutual funds, IRAs, and other products that allow customers to diversify their portfolios. 

Credit unions, such as Credit Union of Denver, usually don’t offer these services; instead, they focus on loan products such as mortgages, auto loans, personal loans, and business loans.

Fees

Another major difference between banks and credit unions is fees. Generally speaking, banks charge higher fees than credit unions do for their services. 

This includes ATM fees if you use an outside networked machine rather than one from your financial institution. Additionally, many banks will charge monthly maintenance fees on accounts with low balances or require minimum deposits for certain accounts that may not be required at a credit union.

Interest Rates

Finally, banks tend to have higher interest rates when it comes to loan products like mortgages or car loans compared to those offered by credit unions. 

Credit unions often have lower interest rates because they are non-profit institutions owned by members rather than shareholders who expect profits in return for their investments. 

Of course, there are always exceptions depending on the financial institution. However, this is generally true across the board when comparing banks versus credit unions regarding interest rates.

In conclusion, both banks and credit unions have their own unique set of benefits that make them attractive options when choosing a financial institution for your needs. 

It's important to consider all of the factors discussed here before making a final decision about which type of institution is best for you—from services offered to fees charged—as well as any other additional features or policies that may apply at either type of establishment. 

Ultimately it boils down to finding the right balance between price and value that meets your individual needs.

SWIFT: A Preferred Method of International Currency Transfer

SWIFT Logo (Photo credit: Wikipedia)

It would be great if financial institutions around the globe could communicate with each other and all trade using the same currency. Unfortunately, this is unlikely to ever happen. Enter SWIFT. SWIFT stands for The Society for Worldwide Interbank Financial Telecommunication. It's a network that enables financial institutions to send and receive information about transactions in a secure and reliable environment.

The SWIFT secure messaging network runs from two redundant data centers. One of those data centers is located within the U.S. The other is in the Netherlands. Each center shares information in near-real-time. If one of the centers fails, the other is able to pick up the slack, handing the traffic for the entire network.

History

The SWIFT system didn't always exist. In fact, it's relatively new in the financial industry. Started in 1973, it was supported by 239 banks in 15 different countries. The major benefit of the organization at that time was that it established common standards for financial transactions and it also shared data processing systems as well as a worldwide communications network.

In 1977, the first message was sent. Just one year later, 10 million messages had been sent. Then, in 1979, the North American operating center opened up. The next year, Hong Kong and Singapore were connected to the system. From there, it grew steadily through the '80s, enhancing stability and security - the system also started turning a profit in 1982.

By 1991, the organization had been noticed by the Smithsonian and received the Computerworld Smithsonian Information technology Award for its standardized financial telecommunication work. Without SWIFT, worldwide financial transactions would be virtually impossible at scale since private networks would be unable to communicate with each other.

Swift Network Organization

In 2003, the system turned 30 and had a lot to show for it. Yearly traffic reached 2 billion FIN messages - nearly double the volume since 1999. In 2010, SWIFT acquired Sunguard's AMH business (Arkelis), thus extending its portfolio of high-end messaging services. In 2011, it's most innovative advancement ever happened. It launched SWIFTRemit - the first global platform for person-to-person payments.

Why It's Good

Financial institutions, by and large, love the SWIFT system. For them, it means a couple of things:

Security - Financial institutions can transmit data in an environment that is guaranteed to be secure, uniform, and reliable. Transactions between financial institutions would otherwise be inherently risky since data transfers on a public network are not secure enough for the kind of data that most financial institutions transfer.

Syntax Standards - Financial institutions need a "central hub" where they can communicate with each other. SWIFT provides that. Since it standardizes communication between all member institutions, it doesn't matter what internal, proprietary, system a company uses.

Integration - SWIFT provides real turn-key solutions for member institutions. These solutions provide members with "Computer-Based Terminals" so that each member can manage delivery and receipt of messages.

Consideration

Financial firms that make use of SWIFT systems often feel very secure using the system. However, after September 11, 2001, the U.S. government was allowed access to SWIFT's system. SWIFT has been criticized for allowing the government access to sensitive data. While the government has only ever accessed data in an attempt to track terrorist activity, some critics believe any access at all compromises the integrity and security of the system.

Dennis Tarver is a business finance consultant. His articles mainly appear on personal finance and business sites around the web. For more information about foreign currency payments, visit the link.