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Kevin Van Lenten
Staff

Kevin Van Lenten asked 5 months ago in Credit Unions

Credit Unions?

My wife is eligible with her job to be a part of a credit union bank. What are the advantages and disadvantages to having our money there as opposed to a traditional bank?

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Michael S. Cocco, CFP®
FiLife Contributor
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By being a member of a credit union through work or an association, you may be able to enjoy slightly higher interest rates on FDIC insured savings accounts than other banks, and also favorable treatment on loans that you take from them compared to other banks because the members of the credit union "own" the assets because they deposit the money to be used to lend to their "peers", often helping to lower the margins on deposit and loan rates.

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