If you’re sick of getting hit with fees and being treated like you’re a nuisance rather than a person, then you really, really, need to learn about credit unions and how they’re totally different than banks.
Here’s the low down, plain and simple:
Credit unions are owned by members. If you have an account at a credit union, then you are one of its owners, or what they call a ‘member’. Every member has equal ownership – which credit unions call ‘shares’. A share for a Sprowt account is $10, which goes into an account and earns interest. If you ever decide to leave the credit union (which would be silly) then you get your 10 bucks back plus the interest it earned.
They’re locally owned and operated. Well, that’s not entirely true – some credit unions have head offices in Toronto – but not Sprowt. Sprowt is a PenFinancial Credit Union brand and product, and PenFinancial Credit Union is only in the Niagara Region. The credit union has oh, about 11,000 members and growing. Our CEO, Bob, lives in Welland and is a great guy who wears short sleeved shirts. Even though he’s a CEO, he still meets with members every day. Do you even know your bank branch manager’s name, let alone the CEO?
Credit Unions are not-for-profit. This explains why interest rates tend to be significantly better than banks. Credit Union profits are reinvested back into the community by providing better rates on loans and higher interest rates on deposits. PenFinancial also gives back to the Niagara community – by sponsoring events and other not-for-profit organizations that help to grow a stronger Niagara. Compare that with the banks who pay crazy executive salaries and continually gouge their customers to make more and more profit.
Credit Union’s are there when you need them. Unlike a bank, PenFinancial Credit Union treats everyone equally and with respect – whether you’re young, old or have $50 or $50K in your account. If you run into some financial troubles – whether you lose your job or have to take a leave of absence to help a sick loved one, PenFinancial will work with you to help get through difficult times so that your credit rating remains in tact and you don’t lose anything that you’ve worked hard to earn.
Here are some great youtube videos that effectively explain the differences between banks and credit unions – enjoy!
