Being an employee where I am entitles me to becoming a member of the local credit union if I choose to do so. What I do not understand is what is the benefit of becoming a member of a credit union? Is there any benefit at all? How are these places different from regular old banks?
Credit Unions, generally, have lower overhead and charge fewer, smaller fees. You make a list of the current features you uitlized in your bank account (online bill pay, debit card, credit car, atm access, etc.) and compare that against ths credit union.
Not to mention, if you're with a credit union, they'll most likely give you a better rate or a higher limit on any loans or credit cards you apply for. I've been with my credit union for 10 years now, and they gave me the best rate by far on my car loan.
OK, once a member do you stay a member even if you go to work for a place that does not have affiliations with the credit union?
I can with mine as long as I keep an account open. It's not like they don't want your money any more.
Yes. Typically, a credit union will place a small portion (usually no more than $25) of your savings account on permanent hold for as long as the account is open - this represents the 'membership' portion of your account and everyone who is a member, including employees of the credit union, has that portion of funds on permanent hold. So long as you don't close the account, you will remain a member of the credit union.
