Credit Unions Vs Big Banks Essay

663 Words2 Pages
bulb-icon

Recommended: Conclusion of importance of employee relationship

Credit Unions vs Big Banks This paper will talk about how credit unions and big banks compare and contrast with each other. Each have benefits and disadvantages that customers need to consider. Customers have many options to choose where they want to bank and which is best for their needs. There are many benefits of credit unions. One of the benefit is that you are a member of credit union. "As a member of a credit union, you’re not only a customer, but part-owner of the organization. Aside from receiving better service, you possess voting rights, have a say in the operation of the credit union and receive dividends" (Young, 2016). Other benefits are that you will better rates and lower fees at credit union than any big banks. "Credit unions are not-for-profit organizations and share surplus funds in the form of higher interest rates on deposit accounts" (Young, 2016). Customer service at credit unions will be better than any big banks because credit unions are small and they know their customers by name. There are some disadvantages of credit unions. One of the disadvantage is that you can’t just go to any credit union and open an account. One must be a member to open an account and to become a member you have belong to some type of organization or pay to the organization that …show more content…

The credit unions and the big banks “are both financial institutions that offer similar services (checking and savings accounts, auto loans, and mortgages” (Diffen, n.d.). They both help their customers to handle their money. Both financial institution’s deposits are insured. “The Federal Deposit Insurance Corporation (FDIC) is a government organization that provides insurance on deposits being held at banks. Just like the FDIC insures deposits in banks, the National Credit Union Share Insurance Fund, which is backed by the government, insures deposits in credit unions up to a total of $250,000 in individual accounts” (Diffen,

Show More
Related

  • The American Banking System from 1800-1810

    3640 Words  | 8 Pages

    Flaherty, Edward. 1997. A Brief History of Banking in the United States <http://odur.let.rug.nl/~usa/E/usbank/bank03.htm> (accessed 12-12-99)

    Read More

  • New Deal Dbq

    584 Words  | 2 Pages

    The job of the FDIC is to provide deposit insurance for members of the banks up to $250,000. An average of 600 banks per year failed between 1921 and 1929. During the initial years are the Great Depression many banks also failed and bank “runs” became common practice. The Glass-Steagall Act or Banking Act of 1933 held responsibility of ensuring deposits within eligible banks until becoming a permanent government agency through the Banking Act of 1935. Since the start of the corporation on January 1, 1934 no depositor has lost any insured funds. As of 2014, the FDIC insured deposits at over 6,670 institutions. Funds deposited into the banks backed by the full faith and credit of the United States Government, are secure. Without the FDIC there would be little confidence in the banking system and irregular quantities of available cash for the community. The FDIC is a successful and necessary

    Read More

  • Community College: Should Community Colleges Be Free?

    903 Words  | 2 Pages

    Community colleges have been tool used by many American students and families as a means of affordable education for better life for themselves and their children. Community colleges has played a big role in helping middle and lower income families who can 't afford to go to 4 years colleges ,the chance to educate themselves and their children. Community college was created in order to give basic liberal , technical and vocational education to all willing to be educated.

    Read More

  • From Gold Rush to National Bank: Wells Fargo's Journey

    1269 Words  | 3 Pages

    In March of 1852, Henry Wells and William Fargo established the well-known bank, Wells Fargo. Originating in the West, Wells Fargo offered banking services, such as buying and selling paper banks drafts, which served as a representation of gold during a prime time in the economy. They would also extend a delivery service of customer’s valuables, branding their corporate symbol of a six-horse stagecoach. “From the Gold Rush to the early 20th Century, through prosperity, depression and war, Wells Fargo earned a reputation of trust due to its attention and loyalty to customers.” (“History of Wells Fargo”) With the help of the transcontinental railroad, Wells Fargo exploded across the nation throughout the years and still is considered one of the

    Read More

  • Credit Unions And The Financial Market

    1095 Words  | 3 Pages

    Graduate Research Paper: Credit Unions in the Financial Market Literature Review Knowing the history of credit unions and how they were originally structured, it is important to understand where credit unions will be going in the future. It is anticipated that there will be less than 3,000 credit unions in the next 25 years. This is down considerably compared to the more than 6,000 existing credit unions in 2015 (Strozniak, 2015). Competition for credit unions will continue to be other financial institutions and financial services providers, but there will also be competitors entering the market, such as peer-to-peer lenders and other fintech start-ups that will begin to take over some of the existing credit union market space (Strozniak, 2015). Consumer lending is a core line of business for credit unions and in addition to traditional competition, sophisticated start-ups are starting to impact the market in terms of unsecured loans, mortgages and business loans (Strozniak, 2015).

    Read More

  • Argumentative Essay: The Benefits Of Community College

    580 Words  | 2 Pages

    The final assumption that is not as expressed as often is the thought that Community colleges have low academic standards. However, this is just simply not true. students usually have to take placement tests in order to qualify for college level work. Technical and special programs have high standards and students compete to enroll. Going off that, community colleges just offer extra support to students to see them succeed.

    Read More

  • The Myth Of The Student Loan Crisis Essay

    1256 Words  | 3 Pages

    Many Americans are seeking an ideal presidential candidate for our next election; furthermore, many college students seek a candidate that has their best interest in mind, leading many to focus on Bernie Sanders and his ideas for an affordable education system. In the article, The Myth of the Student Loan Crisis, Nicole Allan and Derek Thomas focus the article on the risky investments of college and questioning the rising debt levels as a national crisis. While Allan and Davis claim the risk of college and mention rising debt levels as a national crisis; however, Allan and Davis use charts to support their stance while avoiding the issues Americans need to focus on, such as the rising cost of college, “justifiable debt”, and the cost of those not contributing to society.

    Read More

  • Depression Essay: The Causes Of The Great Depression

    896 Words  | 2 Pages

    The bank failures happened around 1920s to 1933. After hearing the news, everyone tried their best to withdraw all their money from their banks. Many wealthy people also tried to pull out their investment assets out of the economy. The total amount of the money lost was $140 billion, which is the money that people had deposited in their accounts (Facts About The Great Depression | Facts About Bank Failures). Bankruptcies were also becoming more common after the failures. Not only banks that got bankrupted, but around 32,000 businesses also went bankrupted and they closed down their stores (The Great Depression). Later on in time, Federal Deposit Insurance Corporation (FDIC) was created. FDIC is actually a U.S financial system by insuring deposits in banks and thrift institutions for at least $250,000. (Federal Deposit Insurance Corporation). This system actually helped thousands of bank failures that happened from 1920s and early

    Read More

  • Dodd-Frank Act Case Study

    505 Words  | 2 Pages

    One of the major unintended impacts of the Dodd-Frank Act has been on credit unions and community banks. These banks weathered the credit crisis and lost only 6% of their share of banking assets between 2006 and mid-2010. A recent Harvard study indicates that this decline accelerated to 12% since the passage of the Dodd-Frank in July 2010. [a] While the community banks’ earnings increased by 12% to $5.3 billion by mid 2015 the number of these banks had declined according to Federal Deposit Insurance Corporation. The number of banks with assets under $1 billion has declined from around 7500 in 2010 to less than 6000 since Dodd-Frank came into effect. [b] Increased compliance costs due hiring of new personnel to interpret the new regulations compelled these banks to cut down on customer service amongst other things. The law hurt them disproportionately and forced them to consolidate. Regulatory economies of scale drive the process of consolidation. A larger bank is often more equipped at handling increased regulatory burdens

    Read More

  • Bank Fees

    502 Words  | 2 Pages

    Credit unions can be an alternative to banking fees. These institutions are owned by their members, and pass their savings onto their members. Credit Unions are classified as not for profit entity unlike banks that are guided by their stockholders. The draw back to these institutions, however, is the lack of choices. If you are a convenience base customer, these institutions would not be a good choice because the locations are not as convenient as the banks.

    Read More

  • Is America Corrupt

    881 Words  | 2 Pages

    Fearful about the future of the vast amounts of federally-insured money being invested, the Federal Home Loan Bank Board (FHLBB) instituted a financial cap on the amount of money that the savings and loan associations were allowed to place in such volatile instruments. An investigation into Lincoln Savings and Loan uncovered violations of these regulations, exceeding the limit by over $615

    Read More

  • Financial Literacy Essay

    1385 Words  | 3 Pages

    High school seniors takes deep breaths and parade onto the stage. The beginning of a new chapter awaits as they make the journey from one point of the stage to the end. They reflect on what they have been taught in those many years of high school. The most terrifying fact while graduating high school is the next step: making it on their own. Because they have taken part in the appropriate classes, the students are certain that they have gained the correct knowledge to begin making their mark on the world. In high school, it is crucial to achieve the appropriate classes in order to feel ready to take on the world ahead as an adult. However, many students lack proper education. One key example is financial literacy. Financial literacy is the

    Read More

  • Deregulation Act Of 1978

    764 Words  | 2 Pages

    The Airline Deregulation Act of 1978 The Airline Deregulation Act of 1978 is a public law 95-504 95th Congress. https://www.gpo.gov/fdsys/pkg/STATUTE-92/pdf/STATUTE-92-Pg1705.pdf was introduced by the Senator Howard Cannon of Nevada on February 6, 1978 and was passed and signed by President Jimmy Carter on October 24, 1978, http://avstop.com/History/needregulations/act1978.htm. This is the United States federal law and the main purpose was to remove government control over air fares, routes and market entry of new airlines from commercial aviation. The civil Aeronautics Board’s powers of regulation were being phased out which eventually allowed passengers to be exposed to the market forces in the airline industry.

    Read More

  • The Traditional Theory of Banking

    3883 Words  | 8 Pages

    This is followed in section 5 by an analysis of the recent changes in the banking industry. With the development of the financial system, declining entry barriers and the deregulation of the banking industry make banks no longer the monopoly suppliers of banking services and reduce their comparative advantages which they usually hold in the past. Whether the reasons give rise to the existence of banks are still powerful will be examined here, while section 6 offers a way of considering whether banks are declining by looking at the value added by the banks. When the value added by banks is examined, banks are not a financial intermediation, which not only conduct the traditional services but also provide more diversified

    Read More

  • Essay On Advantages And Disadvantages Of Credit Cards

    643 Words  | 2 Pages

    One advantage of using credit cards is that they have more benefits and features for people. Credit cards are very useful since it is much easier to carry around than having cash. They are better to carry around than cash because of the many benefits that come along credit cards. Usually for every credit card user there are many packages and offers that the credit card company gives to their clients. Once people start to use the credit cards more often, they can get frequent flier miles based on how much they are spending with the credit card. Another benefit of using credit cards is that as time goes by the company can offer different promotions or packages to people, they can get discounts on cars and other attractive products. These promotions are another way to also advertise the use of credit cards since it is very beneficial to use. People that don’t use credit cards and prefer to carry around cash don’t have any benefits and promotion packages in which they can use to their favor, unlike the credit card users. These promotions offered by the credit card companies is very helpful to some people that don’t have the money...

    Read More

More about Credit Unions Vs Big Banks Essay

Open Document