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When it comes to managing your finances, choosing between a credit union and a bank can be a crucial decision. Both institutions offer a variety of services, but there are several myths and truths that can influence your choice. Let’s dive into some of the most common misconceptions and realities about credit unions and banks.

Credit Unions Are Less Secure Than Banks

Both credit unions and banks are highly secure. Banks are insured by the Federal Deposit Insurance Corporation (FDIC), while credit unions are insured by the National Credit Union Administration (NCUA). Both insurances provide up to $250,000 per account holder, ensuring that your money is safe regardless of the type of institution you choose.

Credit Unions Offer Limited Services

Credit unions offer a wide range of services similar to those provided by banks, including checking and savings accounts, loans, mortgages, credit cards, and online banking. While smaller credit unions might have fewer branches, many are part of shared branching networks, allowing you to access your accounts at other credit unions nationwide. GPO has many different accounts from Personal Checking to Personal Saving as well as many different Loans offered for members.

You Need to Meet Strict Criteria to Join a Credit Union

While it’s true that credit unions have membership requirements, these criteria are often broad and easy to meet. Membership can be based on your employer, geographic location, or membership in certain organizations. Many credit unions have expanded their eligibility criteria, making it easier for more people to join. Becoming a member at GPO is easy, if you or a family member live, work, worship, or attend school in Fulton, Hamilton, Herkimer, Madison, Montgomery, Oneida, or Otsego Counties, you are eligible.

Banks Have Better Technology and Online Services

While larger banks often have significant resources to invest in technology, many credit unions also offer robust online and mobile banking services. In recent years, credit unions have made significant strides in technology, providing features like mobile check deposits, online bill pay, and comprehensive mobile apps. Being a GPO member grants you access to enhanced online and mobile banking services with features that include mobile check deposit, GPO’s bill pay, remote control for cards, e-alerts by text or email and GPO at Home online loan application.

Credit Unions Have Higher Fees and Interest Rates

Credit unions are typically known for offering lower fees and better interest rates in loans and savings accounts compared to banks. Since credit unions are not-for-profit, they return their profits to members in the form of lower fees, higher savings rates, and lower loan rates. Banks on the other hand, are for-profit institutions and may have higher fees and interest rates as they aim to generate profits for shareholders.

Banks Are More Convenient Than Credit Unions

Convenience often depends on your personal needs and location. Large banks may have more branches and ATMs, but credit unions often participate in shared branching networks and offer access to a large network of ATMs, sometimes even without fees. GPO offers a network of tens of thousands of fee-free ATMS for members to conveniently make withdrawals and deposits nationwide. Additionally, many credit unions provide excellent customer service and personalized attention, which can be a significant advantage.

Choosing between a credit union and a bank depends on your individual needs and preferences. Both institutions have their own set of advantages and can offer secure, reliable financial services. By debunking these myths, you can make a more informed decision about to manage your money.