Money is valuable. It causes and solves problems, divides and unites people, and breaks and creates boundaries. Money is powerful, which is why it’s so important to put it in a place that will treat it as such.
There are a few ways to handle money. There are of course people who store and keep track of their money by themselves, but for a vast majority of people, banks and credit unions are a smart choice.
It’s crucial to do research before choosing a place to store hard-earned money. It’s important to look at the benefits, interest rates, fees, loan options, checking and savings options, and anything else that may be needed before settling on a financial institution.
Banks and credit unions are both valid options, but both have their advantages and drawbacks.
Where credit unions and banks mainly differ is in the nonprofit versus for-profit business model. Banks are traditionally for-profit entities, meaning that part of what customers pay in interest and other fees goes toward shareholders. Customers of banks do not have any sort of ownership or stake in the business.
Credit unions, however, follow a nonprofit model where members are part-owners of whatever credit union they belong to. The nonprofit approach allows credit unions to typically lower interest rates and other fees to as low as possible to stay in business. Any profit is distributed back into the company. Without shareholders to keep satisfied, credit unions can generally offer better deals to their members.
Allegius Credit Union prides itself on giving members the best deals possible. The team works with members to navigate tricky financial situations and find solutions that work for both parties.
“We are focused on providing products and rates at the best terms that we can afford,” Member Development and Marketing Manager John Figueroa said.
In the past, credit unions were often outbid by banks due to the fact that many were not able to compete with the checking account benefits offered by banks. The playing field has since been leveled, and credit unions are often just as competitive. The introduction of tools like Kasasa checking accounts, which offer equal – and sometimes better – benefits than other banks, has caused credit unions to become a much more beneficial option for some people.
Credit unions also tend to be much smaller companies, with just a few locations scattered around a specific region. Since credit unions are generally smaller entities, it’s easier for information to travel up and down the chain of command in a timely manner, meaning that members can get the help they need without having to wait weeks for an answer.
“Credit unions are very member-focused. With Allegius just being a four-branch credit union in Northwest Indiana, if one of our members comes in and they sit down with the branch manager or one of our loan officers and have a question that they can’t answer, it will still go through the chain of command, but we can get answers back to our members a much more timely manner,” Figueroa said.
Allegius also offers benefits for members that other banks typically do not offer. The Holiday Skip-a-Pay program – a popular benefit among members – allows members to choose to skip a loan payment in either November or December to ease some of the financial stress of the holiday season. For customers of most major banks, this type of benefit does not exist.
“If you were to go into a large bank at that time of the year and ask for anything like that, they would probably look at you like a deer in the headlights because they would have no clue what that is,” Figueroa said.
Each branch’s close proximity to each other allows for employee collaboration as both separate branches and as a uniform company. Company-wide celebrations like soup cook offs and holiday parties help team members get to know each other across branches and build relationships that benefit both themselves and the members they serve.
“Everyone shows up to work knowing that first and foremost we're here to serve our members, but we like to have fun as well. No matter what department you're in, everyone is so collaborative,” said Figueroa.
To learn more about Allegius Credit Union and its benefits, visit https://www.allegius.org/.
