Banking vs Credit Union – The Pros and The Cons

1. Banking vs Credit Union – The Pros and The Cons Business owners have a choice of options when it comes to taking out business loans, storing their cash and securing credit. The right banking solution may be right in front of you, but there are two great options you can take into consideration, both for your business and personal financial needs. The first option is a credit union. But what is a credit union? These are financial institutions that are owned by the members. Members have common economic interests. They are nonprofit entities offering affordable financial solutions to their members. A good example is a group of nurses who create a credit union for nurse investments in a common location. The one difference you will find is that the two options will provide different interest rates on their deposit accounts. Savings accounts with the best interest are often offered by credit unions over a bank. Credit unions do tend to pay higher interest on deposit accounts. This includes savings accounts, checking accounts, money market accounts and more. Banks that operate online may have comparable rates to the credit unions. Business owners need to have a good understanding of loans, interest and more to ensure that they secure the best interest rate on their loans. Mortgages, business credit cards, personal and business loans and lines of credit are provided by credit unions. Traditional banks may have a higher interest rate, but often business owners have a better success rate by choosing a commercial bank over a credit union. Transaction fees are a very important factor to consider when looking at the pro and con of banks and credit unions. Credit unions are community orientated and therefore their fees tend to be lower than banks, but of course, not everyone has access to a credit union. Bear in mind that most credit unions do not charge servicing fees and therefore could save you money in the long run. Banks and credit unions offer great flexibility when it comes to banking services. Banks offer the convenience of internet banking, enabling you to the bank at any time, while credit unions are more likely to consider those with a poor credit history. Banks have branches where clients can go and have large numbers of customers. These banks have to work to strict qualifying criteria to ensure that they don’t put themselves and the rest of their clients at risk when it comes to business loans and business banking. Credit unions have a smaller member base, and therefore their web-based features can be exceptionally limited. Simple transactions may be allowed, but they don’t offer the complete convenience and variety of banking online. Banks offer you the opportunity to view your recent activity, make payments, apply for a credit card, loan applications, pay bills and more online, offering added convenience and enabling you to manage your banking at a time that meets your tight schedule. When it comes to financial products, credit unions are going to have slim pickings. Banks will offer a wide variety of accounting options from loans credit cards, accounts, mortgages

2. and more. This will provide the business owner with an extensive selection based on their unique requirements. The final pro and con when it comes to credit unions and banks are that the bank will provide physical locations that clients can visit to do their banking, meet with the bank manager, get information on products and services and more. About Us: CalPrivate Bank, formerly San Diego Private Bank, is a leading private bank, serving clients throughout Southern California in the United States. This very well- established bank services high net worth individuals and businesses of all sizes. CalPrivate Bank’s focus is to provide a Distinctly Different Banking Experience through unparalleled service and creative funding solutions for individuals and businesses with complex financial needs. They offer a wide array of financial services, including checking, savings, time deposit accounts, treasury management, and related tools. To find out more, visit https://calprivate.bank/.