Credit unions provide a wide range of products and services that go beyond basic savings accounts. If you’re curious about how traditional banks and credit unions differ, this guide will help you understand what credit unions are, what they do, and the many benefits they offer to members.
What Exactly Are Credit Unions?
A credit union is a not-for-profit financial institution owned and controlled by its members. Unlike banks, which distribute profits to shareholders, credit unions return earnings to their members in the form of better rates and reduced fees. When you open a credit union share account (a type of deposit account), you officially join a credit union and become a partial owner of the credit union.
This not-for-profit structure allows unions to focus on customer service and meeting the needs of their communities instead of maximizing profits.
Credit Union Services
In the past, credit unions were limited to basic savings and lending. Today, most credit unions offer nearly every service you’d expect from a large bank—often with better interest rates, reduced fees, and a stronger commitment to members.
Here are some of the financial services credit unions offer:
1. Checking Accounts
Many credit unions provide low-fee or free checking accounts with features like cash back rewards and direct deposit.
2. Share Accounts (Savings Accounts)
A share account is the foundation of membership. By making a small deposit, you become a member of a credit union and part-owner.
3. Debit, Credit, and ATM Cards
Members often have access to debit cards, ATM cards, and credit cards that work with major payment networks.
4. Loans for Homes and Vehicles
From auto loans to mortgages, credit unions offer competitive interest rates and flexible terms.
5. Personal and Secured Loans
Options like credit builder loans help members improve credit scores or cover unexpected expenses.
6. Home Equity Loans
Members can use home equity to finance renovations, education, or other needs.
7. Deposit Accounts and Investment Options
In addition to savings accounts, many credit unions provide IRAs, HSAs, and other long-term savings products.
8. Digital and Online Banking
Modern credit unions provide online banking and mobile apps, allowing members to transfer funds, pay bills, deposit checks, and more.
9. Safety Deposit Boxes
Some credit unions offer secure storage for valuables and documents.
Other Services Credit Unions Provide
Credit unions often go beyond just banking:
- Financial Education: Many credit unions provide free workshops, counseling, or online tools to help members with budgeting, credit repair, or saving for big goals.
- Community Focus: Unlike big banks, credit unions are deeply rooted in their local areas. They often support schools, nonprofits, and local causes through sponsorships and volunteer work.
- Specialized Accounts: From children’s savings accounts to business banking solutions, credit unions design products that meet the needs of their local communities.
Frequently Asked Questions
Is a credit union better than a bank?
Credit unions often provide lower fees, better interest rates, and more personalized service compared to banks. However, the best choice depends on your financial needs and preferences.
What are the disadvantages of a credit union?
Credit unions may have fewer branches, ATMs, or advanced digital tools than large banks. Membership requirements can also limit who is eligible to join.
Can anyone join a credit union?
Not everyone can join every credit union, as eligibility is usually based on where you live, work, or worship. Some credit unions also extend membership through family or community ties.
Why Choose TPFCU?
Credit unions like The People’s Federal Credit Union (TPFCU) offer the same convenience you expect from modern banking, paired with the personal touch of a not-for-profit institution. When you join TPFCU, you’re not just opening an account—you’re becoming part of a cooperative that exists to serve its members with better rates, fewer fees, and attentive customer service.
Membership at TPFCU is open to anyone who lives, works, or worships in Canyon, Childress, Hereford, parts of Amarillo, and Deaf Smith County. That means you can enjoy a full range of financial services close to home, with the added benefit of keeping your money in a member-focused organization.
If you’d like to learn more about TPFCU’s checking accounts, savings accounts, loans, and member services, reach out to our team today.
