When people think about saving or investing their money, they usually think of banks. However, there are other options available that can offer higher interest rates and provide other benefits. Here are some places to consider putting your money instead of a bank.
- Credit unions – Credit unions are very similar to banks but are owned by their members (account holders) instead of shareholders. Credit unions often have lower fees and better interest rates on savings accounts and loans. In addition, credit unions typically have a local focus and can offer more personalized service than big banks.
- Online banks – Online banks don’t have the same overhead costs as traditional brick-and-mortar banks, so they can offer higher interest rates on savings accounts and loans. Online banks also tend to have lower fees than traditional banks. However, it’s important to make sure you choose a reputable online FDIC-insured bank.
- Brokerage firms – If you’re looking to invest your money instead of just saving it, you can open an account with a brokerage firm. Brokerage firms allow you to buy and sell stocks, bonds, and other investments. You will likely pay fees when you buy or sell investments, but many firms offer commission-free trades for specific investments.
- Investment apps – If you need more time to commit to an investment account with a brokerage firm, several apps allow you to start investing with just a few dollars. These apps typically invest your money in a portfolio of exchange-traded funds (ETFs) or index funds and charge very low fees.
- ]IRA or 401(k) account – If your employer offers retirement savings plans like a 401(k) or 403(b), you should take advantage of it! These plans allow you to save for retirement with pretax dollars, which can help reduce your taxable income and increase your tax refund (or lower the amount of taxes you owe). Many employers also offer matching contributions and free money for your retirement account!
Table of Contents
What is a Credit Union?
A credit union is a not-for-profit financial cooperative owned and controlled by its members. Unlike banks, which are profit-driven businesses owned by shareholders, credit unions return their profits to members in the form of higher dividends on savings, lower loan rates, and enhanced services.
How do Credit Unions Work?
Credit unions are not-for-profit organizations that are owned and operated by their members. Unlike banks, credit unions don’t answer stockholders. They return their profits to their members through better deposit interest rates, lower loan rates, and enhanced services.
How do Credit Unions Work?
All credit unions have a “common bond” or “field of membership.” That means everyone who belongs to the credit union shares something in common. It might be where they live, work, worship, or go to school. Some credit unions serve a single company; others might serve everyone in a particular geographic area.
What are the Benefits of Credit Unions?
When you bank with a credit union, you can feel good about knowing that you’re not helping to line the pockets of some wealthy shareholders. Credit unions are not-for-profit organizations, meaning they don’t have to answer to shareholders. Credit unions’ profits are returned to their members through higher interest rates on savings accounts, lower fees, and better service.
How to Join a Credit Union
Credit unions exist to serve their members, not to make a profit. They are not-for-profit organizations that are owned and democratically controlled by their members. As a profit-sharing cooperative, credit unions return earnings to their members through lower loan rates, higher savings dividends, and new and improved products and services. When you join a credit union, you become a shareholder – or an owner – of a unique financial institution.
What are the Different Types of Credit Unions?
There are several credit unions: federal credit unions, state credit unions, county credit unions, and city credit unions. Each type of credit union is slightly different, but they all offer the same basic services.
Federal Credit Union: A federal credit union is a financial institution regulated by the National Credit Union Administration (NCUA). Only federal employees, members of the military, and their families are eligible to join a federal credit union.
State Credit Union: A state credit union is a financial institution regulated by the state in which it is chartered. Anyone who lives, works, or worships in the state where the state credit union is located can join.
County Credit Union: A county credit union is a financial institution chartered by a county government. Anyone who lives or works in the county where the county credit union is located can join.
City Credit Union: A city credit union is a financial institution chartered by a city government. Any person who lives or works in the city where the city credit union is located can join.
What are the Largest Credit Unions?
Credit unions are not-for-profit organizations owned and controlled by their members in the United States. They offer many of the same services as banks, but they can often offer better rates and terms to their customers.
There are many large credit unions in the US, but the largest ones are listed below.
1) Navy Federal Credit Union: With over 8 million members and over $91 billion in assets, Navy Federal Credit Union is the largest credit union in the US. They offer their members a full range of banking services, including checking and savings accounts, auto, home loans, and credit cards.
2) State Employees’ Credit Union (SECU): SECU is a North Carolina-based credit union with 2.5 million members and over $37 billion in assets. They offer a full range of banking services, including checking and savings accounts, auto loans, home equity lines of credit, and mortgage loans.
3) Pentagon Federal Credit Union (PenFed): PenFed is a Virginia-based credit union with 1.6 million members and over $23 billion in assets. They offer a full range of banking services, including checking and savings accounts, auto loans, home loans, and credit cards.
4) Associated Credit Union (ACU): ACU is a Georgia-based credit union with 1.4 million members and over $9 billion in assets. They offer their members a full range of banking services, including checking and savings accounts, auto loans, home equity lines of credit, personal loans, and mortgages.
5) Star One Credit Union: Star One is a California-based credit union with 1 million members and over $7 billion in assets
What are the Best Credit Unions?
Regarding the advantages of credit unions over banks, great customer service is often cited as a primary benefit. That’s likely because credit unions are nonprofits, so they don’t have to answer to shareholders. Instead, they can focus on providing the best experience possible for their members. They also have more leeway to offer unique products and services, which banks may be restricted from offering due to regulations. And because credit unions are local entities, they can be more invested in their communities.
How to Find the Right Credit Union for You
There are a few things to keep in mind when looking for the right credit union for you. However, finding one that meets your needs and requirements is the most important thing. Here are a few tips on how to find the right credit union for you:
-First and foremost, you must ensure that the credit union you’re considering is insured by the National Credit Union Administration (NCUA). This will ensure that your money is protected in case of any financial problems from the credit union.
-It’s also a good idea to check out the fees associated with membership at the credit union. Some credit unions charge very high fees, while others have very reasonable fee structures.
-Make sure to compare the interest rates offered by different credit unions. Some credit unions offer much better rates than others.
-It’s also important to consider the locations of different credit unions. If you need access to your money regularly, you’ll want to choose a credit union that has branches near you.
Conclusion
After careful consideration, a few places are better than a bank to put your money in. These include:
-Investing in stocks or mutual funds
-Putting your money into a high-yield savings account
- investing in real estate
- -Starting your own business
