Rewards of Membership

If you think back to our very first blog post, The Credit Union Difference, we discussed what makes a not-for-profit institution stand apart from its for-profit competitors. You can read the whole thing here, but if you want the TL;DR version, credit unions choose to be more flexible with their options, both by offering higher dividends on saving and checking products and charging lower rates for loan products. This is possible because credit unions are financial cooperatives, which means rather than holding onto the incoming funds like a bank would (to make money for its shareholders), a credit union has to return the profits to its member-owners. The exclusive membership structure is set up so that only those eligible for membership can join and take advantage of these rewards.

So, you know what makes a credit union different (and better, in my humble opinion), but is there anything else that you need to know? There sure is, or I wouldn’t be typing this, right?

Relationship Pricing

As a member of a credit union, you are more likely to get something known as relationship pricing. What this means is that the longer you have been a member, the more perks you are entitled to. Think of it as VIP pricing for loyal long-time members.

Relationship pricing doesn’t just stop there, though. The more products you have with a credit union means the more you save. Many institutions will offer discounts or specials based on the number of products or services you utilize. This is nothing new – you hear it all the time in insurance company commercials and with good reason. Credit unions want our members happy and telling their friends and family about the wonderful experiences they have with us. We strongly believe that credit unions are always a better option than a bank and love when we get the chance to prove it.

You might recall the Binge Banking Bundles post I did a little while back. Sure, it’s a catchy name (hold the applause), but more importantly, those bundles are a way to reinforce strong financial practices for the benefit of each and every one our members; having members take advantage of more products, means we are able to give back even more to our members. It’s all part of the credit union experience.

If you haven’t been a long-time member, you aren’t stuck with high-interest rates and no perks – in fact, many credit unions, ours included,  will offer their new members a sneak peek of all of the awesome low rates and high dividends they offer – as long as you are getting in on the ground floor.

We uplift our communities

When we say this, we aren’t paying lip service. We take our community charters seriously. It means more than simply being able to extend the benefits of credit union membership to residents and employees of a certain region. As a not-for-profit, we feel we are responsible for giving back to the communities in which we serve.

Summary

Well, you’ve made it this far. Now you know that in addition to the low-interest rate loans and high yield checking (seriously, I can’t think of any other place that pays 2.00% APY* on their checking, it’s unheard of these days), credit unions have other rewards just for being a member.

*APY = Annual Percentage Yield. Rates subject to change without notice. Certain terms and conditions may apply. Dividends are computed on the daily balance method. Fees may reduce earnings. Rate tiers are as follows: 2.00% APY applies to the portion of the balance from $0.01 to $10,000.00. The portion of the balance from $10,000.01 to $15,000.00 will earn 0.10% APY. The portion of the balance over $15,000.00 will earn 0% APY. If qualifications are not met, 0.10% APY will be earned on balances up to $15,000. Dividends earned will be deposited into the member’s prime savings account. 

Do you have a favorite perk? Did I miss anything? Let me know in the comments or email me. Subscribe to this blog so you never miss a post.

Krista Kyte is a personal finance blogger and personal banker with over 17 years of experience in the financial industry. Krista is passionate about helping our members understand their financial situations. She writes tips that will help consumers reach and maintain financial security, and start living the life they’ve always wanted.