There are myths for just about every topic out there. I think communication is one big game of telephone and many times what you hear from another could be completely wrong. I’m going to tackle some common myths about credit unions and give you the facts!
Myth: I’m not eligible to join a credit union.
Fact: The truth is that almost anyone can find a credit union they are eligible to join. Credit unions do have membership qualifications, but you can easily find these qualifications on a credit union’s website or by giving them a call. Currently to be a member of Connex Credit Union you just need to live, work, worship, or go to school in New Haven, Middlesex, or Hartford County. To find a credit union near you, visit www.ncua.gov.
Myth: If a credit union is non-profit, how can they save or earn me money?
Fact: Being a non-profit doesn’t mean that credit unions don’t make profits. Credit unions invest and lend money to make a profit just like any other financial institution. The difference is that credit unions take much of their profits and re-invest them back into the credit union in the form of better rates, lower fees, increased services and many other things. Much in the way that banks share their profits with their stockholders, credit unions share their profits with their members.
Myth: Credit unions are inconvenient. They don’t have enough ATMs or branches.
Fact: For many credit unions this myth couldn’t be further from the truth. Many credit unions participate in large surcharge-free ATM networks and shared branching programs. Check with your local credit union to learn more about what they offer. Currently Connex members have access to more than 43,000 surcharge-free ATMs on the Allpoint ATM Network and more than 4,500 credit union branches with shared branching.
Myth: My money isn’t safe in a credit union like it is in a bank.
Fact: Your deposits are 100% insured in a credit union the same way they are at a bank. Credit unions are insured by the National Credit Union Administration (NCUA) and banks are insured by the Federal Deposit Insurance Corporation (FDIC). Both the NCUA and FDIC insure deposits up to $250,000 and are backed by the full faith and credit of the U.S. government.
Myth: Credit unions don’t offer enough services.
Fact: While some small credit unions might have limited services, most are full service credit unions that have all the products a big bank would have. Some credit unions offer more services than the big banks. Visit www.connexcu.org to view all the services offered at Connex.
What other myths have you heard? I’m here to debunk them! 🙂