There are always options: Banks vs. Credit Unions

There is no reason to be intimidated by the US financial system.

By Adriana Brunner

The US Financial System can be a bit intimidating. But it doesn’t have to be. The most important thing is to understand the available options and the type of financial institutions that will best adjust to your family needs.

Banks are for-profit financial entities. Accessing their products and services could require incurring some types of fees. Also, the bank owners are often investors who are shareholders in the institution. The bank shares are publicly traded. Your bank accounts will be insured depending on the amount by the FDIC (Federal Deposit Insurance Corporation).

There is another option—credit unions. These institutions are not-forprofit entities, so the associated fees for their products and services are lower, or in some cases, there are no fees. The main goal of credit unions if to offer products and services that other traditional institutions may not be able to provide. For this reason, they serve underserved populations with products, services, and education.

Credit unions are safe institutions and are insured by the NCUA (National Credit Union Administration), When you are going to open your account, you will need two forms of ID, depending on the financial institution. One example could be your driver’s license and your utility bill. The financial institution will verify your name, address, and any additional information.

Remember that when you open your checking account, it is insured and available for you to make any required transactions. You can deposit your payroll check or your work income in the account once it is opened. Places where you can cash your payroll check usually charge high fees or commissions for that service, so having an account is a better option.

In general, when you open a checking account, the institution will probably also offer you a savings account. It is not mandatory for you to have both accounts; you can have both, or just checking or savings.

My personal recommendation is to have both accounts because they have different purposes. The checking account will be used for your most frequent transactions (for example, utility bills, loan payments), and the savings account will be to keep your savings safe.

You will also receive a debit card that can be used to shop at stores and to access ATMs. It is important to remember that the PIN number or code to use your debit card is private. Please do not share it, so you can protect your privacy.

It is important to select the financial institution that will offer you the best service and will help you get educated to have a successful future! There are always options and it important to keep learning and to ask questions. Everyone has questions, so don’t be embarrassed to ask.

Contact the author

Adriana Brunner is at your service, as a member of your community.

Adriana Brunner

- MyPoint Credit Union—Cooperativa de Crédito MyPoint Credit Union

- Business Development Manager

- abrunner@mypointcu.com

- 858-243-7471

- mypointcu.com