While credit unions continue to grow across the country, there are still myths about how they operate, as well as the types of products and services that are available. Many times when talking with new members, they are surprised to learn of all the things their credit union can do for them.
Here are some of the top myths we’ve heard about credit unions and the truth of how credit unions operate.
Myth #1: You must meet strict eligibility requirements to become a member.
While credit unions require members to meet certain requirements to fulfill a common bond, many of these are broad and few truly limit membership. Although there are some credit unions which only serve those in a certain industry, others like Educators Credit Union are open to those who live and work in a geographical area.
One of the biggest myths about Educators Credit Union is that we only serve those who work in education. The truth is that membership at Educators Credit Union is open to anyone who lives or works in Dane, Green, Jefferson, Kenosha, Ozaukee, Racine, Rock, Walworth, Washington or Waukesha County in Wisconsin.
Myth #2: Credit Unions only offer Savings accounts.
In addition to savings, credit unions offer checking accounts, consumer loans, debit and credit card services, online and mobile banking, bill pay, checking accounts, IRAs, mortgages, car loans, co-op networks and so much more!
Educators even offers our Ctrl app to protect your cards. With Ctrl, you can turn your Educators Credit Union credit or debit cards on or off. Our mobile app also features FlashCash, which allows you take a picture of your checks and deposit them into your account.
Myth #3: Rates and fees are higher at credit unions.
Credit unions typically have lower fees for their loans and services compared to other financial institutions. Credit Unions also typically have offer better rates because credit unions are not-for-profit institutions. This means that the earnings of the credit union are returned to their members in the form of reduced fees, higher savings rates and lower loan rates.
Educators Credit Union also has the Loyalty Pay Back Reward. Last year, we rewarded the loyalty of our members with a $2.46 million cumulative deposit into their accounts. The deposit was based on the use of certain Educators services and products.
Myth #4: My Money Isn’t Safe at a Credit Union
Your deposits are insured with the National Credit Union Administration. The NCUA insures member deposits up to $250,000 at federally insured credit unions. Learn more about the National Credit Union Administration at their website www.ncua.gov.
Myth #5: If I’m not at a Credit Union Branch ATM, I’m Going to Encounter Fees
Most credit unions offer access to a broad ATM network shared with other credit unions. This network has thousands of ATMs nationwide including many that can take deposits as well.
With Educators, you have access to co-op shared branches and more than 60,000 fee-free ATMs around the country. We even make it easy for you to find one in your area on our website and within our mobile banking app.
We hope this clears up some of the mysteries and misconceptions about credit unions. If you have a question that we didn’t answer, please let us know by commenting below!