Let me explain what a credit union actually is: A credit union is a cooperative financial institution formed by a group of people with common interests of promoting thrift and providing cheap and reasonable financial services to community.
Some facts which you should know about credit unions are:
- Credit Unions thrive on the money pooled-in by a group of people (its members) and provides low interest loans to the members. It shares the profit with its members as dividents
- Credit Unions are generally non-profit organizations
- Credit Unions see its members as partners and not as customers
- Credit Unions are mostly run by volunteer boards
- Like FDIC insures customer's money at banks, the same way NCUA (National Credit Union Administration) insures members's money at credit unions.
The facts that credit uions are non-profit organizations, work and share its profit with the local community, ... usually result in higher rates for savings, checking and CD accounts. I am aware of the high yielding savings and checking accounts available online but if you prefer not to get into those monthly restrictions to get the interest, you may want to consider credit unions.
Rest apart, my observation tells me that atleast CD rates are mostly above the national average at credit unions. If you dig in a little bit more, your credit union might have even more to offer. After all these lines if I didn't tell you where you could find nearest credit union, I wouln't have done my job. Click here and punch-in your demographics and you will see a list of nearest credit unions.