Credit Union Savings Accounts

When it comes to financial products, it is fair to say that over the last few years the relationship between banks and the public has become slightly rocky. Trust is at an all time low, and people are furious at unfair rate hikes and charges. During a time when people all over the world are losing their jobs and their homes, seeing bank managers receiving $100,000 bonuses for essentially failing at their jobs has driven many away from the larger financial institutions.

Featured Credit Union Savings Account

Easy Street Bonus Saver Account

The Easy Street Bonus Saver Account rewards customers with bonus interest when they deposit a minimum of $50 into their account and make no withdrawals. Customers are given 24/7 access to their funds and zero annual fees.

• Maximum Rate: 5.61%
• Standard Variable Rate: 0.01%
• Bonus Rate: 5.60%
• Monthly Account Fees: $0
• Minimum Balance: $0
• Minimum Deposit: $0
• Minimum monthly deposit of $50 required to receive bonus rate.
• Maximum Variable Rate of up to 6.06% p.a includes 6.05% p.a bonus interest.

Read the Easy Street Bonus Saver Account terms and conditions

One group of financial companies has more than benefited from the banks fall from grace, and that group is the credit unions. Worldwide credit unions have enjoyed a real upturn in members and profits, as people look for alternative ways to save and run their financial affairs.

What Is A Credit Union?

Credit unions differ from banks in many ways. One of the major differences between the two is their basic set up and infrastructure. Banks are profit making organizations, built for the sole purpose of making money for the directors and owners. Although they provide the public with a service, the company is ultimately working for itself.

Credit unions are owned, run, and controlled solely my it’s customers. In fact it is very rare you will ever hear a credit union use that term to describe the people that use it’s services. Customers are known as members and have an equal share in how the union is run, as well as a say in important factors in the business such as interest rates etc.

As with any business there will be a board of directors, however with a credit union this board will be voted for by the rest of the credit union members, meaning that the customer has ultimate control over who is running affairs. This board of elected officers will be in charge of the day to day running of the union, as well as being responsible for putting forward proposals for interest rates, products, and incentives. These are then voted for by the union members and a decision reached.

What Services Do Credit Unions Offer?

Generally credit unions will offer the same range of products as the banks, however there are generally better terms and rates available with the credit unions. Here is a brief overview of some products available at the unions.

Personal loans- Most credit unions will offer a basic personal loan which can be used for any purpose. Anything from home improvements, to a much needed holiday away. However some unions actually offer specialized loans for certain items. If you look around there are some unions that offer special car loans. These are specifically for the purchase of a vehicle, and in fact to promote greener living some deals offer better interest rates for people who buy newer, more efficient cars that are under 5 years old.

Like many personal loans available these can be great if you are trying to consolidate existing debts elsewhere. If you have one or more credit cards with an outstanding balance that is costing you a fortune in interest charges, you may find that switching to a credit union personal loan product could save you money on monthly interest, and interest rates in general.

Home loans- Some of the larger unions offer home loan products ideal for those buying their first home, or refinancing their current home. Like the banks you can find fixed rate deals, as well as variable rate loans.

Whatever your income you can choose a product that will fit your current situation, and have the flexibility of switching products if the need arises. Home loans from credit unions can once again have better rates of interest due to the fact that a great deal profit made by the union is used to generate fair and attractive rates for it’s members.

Insurances- In life things can go wrong, and when they do you want to have the security of insurance cover. Many credit unions offer a great range of insurance coverage for most of life’s dramas. Income insurance, home insurance, and even trauma insurance are all on offer depending on where you look, and you can sometimes get special deals for getting all of your coverage from the same union.

Transaction accounts- The unions are not just about saving or borrowing. You can also find a very big range of transaction accounts on offer. If you decide you wish to cut ties to the banks all together then no problem. You are able to choose the best account for your needs and get your wages paid directly into your account. Some will be linked to debit cards, and others will be linked to check books giving you freedom to access your money.

What you often find with transaction accounts from the unions is that there is never much of an admin fee involved. Something that tends to rile people about the current accounts offered by the banks is the amount that they take from us in yearly charges and account fees. This is something the unions have taken to heart, and you will find that many wipe charges altogether, or at least limit them as much as possible.

Credit cards-If you thought that credit unions wouldn’t offer credit cards then think again. They are a big part of many unions product range, and many offer rates that are much more attractive than those on the high street. You will also find many promotional offers, as well as cards with no annual fees. Many people that have used both bank credit cards and credit union credit cards say that the cards offered by the unions work out cheaper in the long run.

As you can see credit unions offer most of the products that can be found at the banks, and in some cases you can actually find a better range of products available.

What Kind Of Customer Would Benefit From Joining A Union?

There is no such thing as a typical credit union member, however some people would probably benefit more from joining a union.

Those who have trouble with credit- If you have been refused credit elsewhere, many people suggest trying at a credit union. They are not softer than the banks but tend to use a slightly different referencing system. They are also very useful for those taking their first steps into the financial world who want to make some headway into building up some sort of credit file.

Rate hunters- Due to the fact that a high number of unions offer very competitive rates on many products, they are a great option for those who are looking for a better deal than they are already getting from the banks.

Online customers- One of the reasons unions can offer members such great offers is because they have much lower overheads than the banks. There are very few branches on the high street which is positive for two reasons. The first is that lower costs for the union means they can pass on some of the savings to members in the form of low rates on credit products, and the second reason is that they run very efficient online services.

You can access all of your accounts and products 24 hours a day over the Internet. As long as you have an Internet connection you will be able to transfer money between accounts, check your balance, and apply for various products. It is a much faster way of doing business, and totally eliminates the need to queue for ages in a branch.

Those sick of the banks- Although not all banks are bad, many of us have become disheartened by the products and services offered. Many blame the worldwide recession on the unchecked and wild lending of many of the large world banks. Sub-prime home loans, and high LTV products plunged many consumers into negative equity, and started the chain of events that saw many banks almost go broke.

If you are looking for an alternative to the banks for all your financial needs, a credit union will be a perfect choice.

Who Can Join?

Generally anyone can join a credit union, however you will mostly find that union members share some common traits or bonds. There are many locally run unions for those that live in a particular area, and you can also find unions for people that work in the same industry. One very good example of this is The Teachers Credit Union which is a well known and well respected union for those that work in, or have been involved with the teaching or education industry.

Most of the time the application process will be the same as any other type of financial institution. You will need to prove you are a full time resident of the country, you will need to show proof of your income, as well as details of your address and previous addresses. The good thing is that because many credit unions do much of their business online, you can apply for many of the products offered by going through a very simple online application from.

If you prefer many unions have live customer service teams who will be more than happy to take your call, and help you with your application over the phone.

Great For Savers- Long or Short Term

One of the products that attracts the most members to unions is their saving accounts. Many love the flexibility that is offered with union saving accounts. You will generally find that there is no minimum or maximum deposit, and that you are able to save as often as you wish. If you compare as many accounts as possible it is also quite likely you will find better rates of interest offered by many of the unions too.

The key as with any new account is to do your home work. Before making the decision to join a union look at your present financial situation, as well as working out what you overall financial goals are. Are you looking for ways to save money and pay off existing debts, do you need a cheaper line of credit, and do you need a current account with easy access to a branch.

Once you have come up with answers to these questions you can then begin the job of comparing the many different unions that are available to you. Remember that there may be unions that you can join because of the job that you do, or because you happen to belong to a particular group of people. If not there are normally some very good local unions with a great range of services, and the same security and comfort that you would expect from anywhere you put your money.