What Is a Checking Account?

It all depends on the needs of the client, when it comes to the type of bank that is preferred. All banks are not the same, neither do they all have the same advantages and disadvantages. What may be preferable by one individual may not be preferable by another.

Difference Between Banking Institutions

People that travel a great deal may not be quite happy with a credit union. Depending on the specific credit union there may not be a good number of them. In fact some of these credit unions may be considerably limited.

For example, there may be a type of credit union set specifically for teachers. This type of credit union is available only in a few cities. So the client will have to travel into the next town to get to it.

Or perhaps the client belongs to a credit union for students that attend a particular college. This college may only be in one state. Each credit union has its own specifications. Once the right credit union is chosen, the client will have to take into account the whereabouts of these credit unions in other states

Other clients may have a high demand for good customer service. They may seek out financial places that hold customer service in a high regard. These types of people may feel they could never be satisfied in a large fast-paced traditional bank.

Taking the time and speaking with an agent one on one is needed. They rely on being able to take their time and ask any needed questions. They also enjoy dealing with the same individual.

Technology and accessibility is a big deal these days for many folks. Going online to handle almost all needed transactions is desired by a lot of customers, but not by all. The easier and more attractive the bank’s website, the better. Bank websites that are not up to date and maintained is a no no for these clients.

Credit unions are known to be generally, slightly behind when it comes to technology. It may be a smart decision to ask about online functions before joining. If the client doesn’t specifically use online tools, then it may not make a difference.

What is a Credit Union Checking Account?

A credit union checking account is simply an account that will hold the client’s money while allowing them also to use it. When the client opens the account they will be given a checkbook. The checkbook will enable the client to make purchases without using cash.

One of the advantages of a credit union checking account is that in many cases the fees are lower. Since credit unions are nonprofit instead of for profit the fees are able to be reduced. For example, an overdraft fee may be $40 per overage at a traditional bank. But at a credit union it was waived completely.

This can be exquisite news for a student that is learning how to budget. Or for a busy mom who may not be as attentive to her checkbook. The amounts of checks written could also vary.

Credit union check writing may be unlimited. However, at a traditional financial for profit institution the limit may be 10 checks a month. If the customer goes over that amount there may be a charge.

Loans are also handled differently in credit unions. Credit unions are owned by the customers. So the customers are able in many cases to make decisions concerning the bank. When applying for a loan, the credit union may be much more lenient than a traditional bank. They may allow a larger loan and apply a lower interest rate.