Whether you are leaving your parent’s house and are just starting your own life, are just relocating to Massachusetts, or are thinking about switching financial institutions because your current one is treating you unfairly, you may be wondering what the differences are between a credit union and a bank in MA. If you are looking for answers, this article will certainly be helpful.
1. Customer vs. Owner – When opening an account at a bank in MA, you are a customer, but when you ask for the same service, you automatically become one of the owners. All financial institutions are managed in such a way that their owners will profit from their investment. Therefore, as an actual share holder of a credit union in MA, you will experience more advantages than if you sign up at a bank. Your banking fees will be lower, and the interest rate on your savings account will be more appealing.
2. Profit vs. non-profit – A credit union in Massachusetts is a non-profit organization, while a bank is, of course, geared towards making as much profit as they can for their owners. When registering an account or obtaining a mortgage at a bank in MA, you will pay higher fees and the interest rate on your savings account will be less than if you would have the same privileges. Banks look to make as much profit as they can. They will not share this revenue with you, the customer.
3. Personalized services – While banking at a credit union is not for everyone, it is definitely a banking option to consider. Because a credit union is usually smaller than a bank in MA, they deal with less bureaucracy within the institution than banks do. The staff is much happier and you, part-owner, can count on more personalized services. They are more intimate; they only tend to a select group of people. For that reason, they will always remember your name!