Benefits of a Credit Union

You work hard for your money. So, why would you give it away in the form of higher loan rates and bank fees? If you’ve been thinking about changing your banking relationship, now is the time to consider making the switch to Suffolk Credit Union. We will not only value and respect you as one of our members, but we’ll help you keep your money where it belongs: In your wallet.

The difference between a credit union and a traditional bank?

A credit union is a not-for-profit financial institution that is owned by its members. As a result, credit unions have the unique advantage of returning profits back to their members by way of lower fees and higher savings account rates. Credit unions take in deposits from their local members and then reinvest those deposits back into the local community with loans for consumers and businesses—right in their backyards.

Traditional banks, on the other hand, are for-profit institutions that are accountable to shareholders—whose focus is to maximize profits. Customers of banks pay higher fees and generally must maintain higher balances in their accounts, among other drawbacks. Additionally, this focus of banks to maximize profits can result in questionable investments or business decisions that are solely focused on short-term returns and not the long-term impact to their customers. 

Are you happy with your banking relationship? Read on to learn more about the benefits you could enjoy by joining a credit union.

Benefits of a credit union

Credit unions offer similar financial products and services as banks. The difference is that we at Suffolk are community-based, where our focus is on the financial well-being of our members. (We think we’re nicer, too!) Here are the top benefits of joining a credit union:

Personal service: You are (technically) one of many owners, so it comes as no surprise that credit unions receive high marks from their members when it comes to providing excellent customer service. Our members are at the center of everything we do. Our mission is to help people move forward by building strong relationships and delivering seamless banking experiences. Together, our employees and members empower stronger financial lives within the communities we serve.

Lower loan rates: Credit unions pass their profits onto their members by offering lower annual percentage rates (APRs) than those of traditional banks. If you’ve been eyeing your favorite car or plan on purchasing a new home in the near future, now is the time to join Suffolk Credit Union.

Higher savings interest rates: Credit unions offer some of the highest annual percentage yield (APY) rates on savings accounts and certificates of deposit (CDs). Deposit your money with SCU and watch it grow!

Lower fees: Credit unions charge lower fees—and have fewer of them—thanks to their not-for-profit status, which makes them exempt from paying federal taxes.

Insured deposits: Member deposits at SCU are insured up to $250,000 per depositor by the National Credit Union Administration (NCUA). Be sure to check out the NCUA Share Insurance Estimator that lets members know how its share insurance rules apply to member share accounts—what's insured and what portion (if any) exceeds coverage limits.

Community support for diversity and inclusion: Credit unions connect with their communities, which are made up of people from all walks of life. By focusing on diversity and inclusion, credit unions embrace their collective mission of supporting underserved communities by offering affordable financial services to those who may instead be charged higher fees and interest rates from other institutions or check-cashing services.

Convenient services: As with traditional banks, credit unions like Suffolk  offer convenient advantages that make it easy to manage your finances, including online banking, a mobile app, and a contact center where you can actually speak with a local banker!

Truth in numbers—putting their money where it counts

In today’s economy, millions of people are turning to credit unions in order to help save money wherever—and however—they can. According to Statista, as of the first half of 2022, approximately 132.6 million American citizens (which is one-third of the U.S. population) had a credit union membership. Even more impressive is the fact that, since the end of 2021, this number increased by three million members. So, what is driving consumers to make the switch from traditional banks to credit unions? Let’s take a look. Credit unions:

• Save members $12.6 billion per year, thanks to lower fees and higher returns on deposit accounts
• Save members $5.6 billion on auto loans
• Generate $4.9 billion of economic benefits on an annual basis

How to join Suffolk Credit Union?

Are you ready to join the millions of people who are enjoying the benefits of a credit union? We at Suffolk Credit Union invite you to become a member. It’s easy to join. Simply apply online, visit one of our convenient locations, or call our contact center. We look forward to hearing from you!