According to a recent survey conducted by the Credit Union National Association (CUNA), many people have heard of credit unions but would not consider a credit union for their financial needs. This is likely due to the widely accepted misconceptions about credit unions. People often believe credit unions offer limited products and services. In this blog post, we are addressing the top five misconceptions about credit unions. 

I am not eligible for membership with a credit union.

Many people believe they are not eligible for membership with a credit union because they do not meet the criteria required to join a credit union. While it’s true that credit unions used to have many restrictions when they were first established, it has become fairly easy to join today. For example, to be eligible for membership with Yolo Federal Credit Union, you only need to live, work, worship, or go to school in Yolo, Sacramento, Placer, or El Dorado County. 

Accessing my money may be hard with a credit union.

Many credit unions are connected through a network with other credit unions. Yolo Federal is a part of the CO-OP network that has more than 30,000 surcharge-free ATMs. What this means is that we do not charge you to use one of these ATMs. You can locate a CO-OP ATM here. 

Credit unions offer fewer services than banks.

Banks are often viewed as full-service financial institutions, while credit unions are not. However, credit unions offer the same services as banks do. This includes Checking Accounts, Online Banking, Consumer Loans, Retirement Accounts, Real Estate Loans, and even Business Accounts. You will also find that credit union services are offered with lower fees and higher dividends than banks. 

Credit Unions are not as up-to-date in the digital world.

Credit unions have adapted to a more digital world. Most credit unions have online banking capabilities and even have a Mobile App. Yolo Federal’s Mobile App has a thumbprint and face identification for increased security. You can even control your cards, turning them on and off at your discretion, or deposit your checks through our mobile app. Whatever you use it for, just know that you can access your accounts at any time around the world.

Credit Unions are not insured. 

While banks are insured by the Federal Deposit Insurance Corporation (FDIC), credit unions are insured by the National Credit Union Administration (NCUA). The NCUA provides the same amount of coverage and insurance that the FDIC provides for larger banks, so you know you’ll be protected.  

Joining a credit union means that you own a piece of that credit union, and your money stays local. These misconceptions may have led some to believe that credit unions are limited in what they can provide for their members, when in fact, credit unions can do anything a bank can do, with their member’s best interest in mind. If you’re looking for a financial solution for all your banking needs, then join a credit union today! Even better, join the #1 Best Credit Union in Yolo County, Yolo Federal Credit Union. Schedule an appointment today!