PennyGem’s Elizabeth Keatinge discusses credit union vs. bank.
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LearningTranscript
00:00Maybe the pandemic has prompted you to make some changes to your finances.
00:08Joining a credit union may be one way to get more flexibility and have your needs served first.
00:13See, credit unions are not profit driven businesses like banks.
00:17They're governed by their members, many of whom volunteer to serve as board members, committee members or in other roles.
00:23According to U.S. News and World Report, credit unions have less rigid eligibility requirements,
00:28lower interest rates, deposits are insured the same way as banks and there are greater financial literacy resources.
00:34There are cons like limited financial product offerings and fewer physical branches.
00:39As Forbes points out, there are also fewer ATMs and credit unions, although they have stepped up their technology game,
00:46still lag behind banks when it comes to their app and online features.
00:50However, can the benefits outweigh the cons?
00:52According to a Credit Union National Association report, the average annual financial benefit to a single credit union member is $85.
01:00For households, it was $178.
01:02HuffPost also points out that during the pandemic, banks are tightening lending standards,
01:07slashing credit lines and making it tougher for lower income customers to get by.