7 Ways Credit Unions Are Better Than Banks

Are credit unions or banks a better option for you? At Bellco Federal Credit Union, we’ve identified 7 ways that we believe make credit unions a great choice!

Originally known as the Bell Telephone Credit Union, Bellco FCU opened its doors in 1938 and continues to provide unique financial products and services to individuals and small businesses in Berks County.

The most significant difference between banks and credit unions is that banks are in business to generate the highest profits for their shareholders, while credit unions are not-for-profit institutions that focus on meeting the financial needs of their members.

Like banks, credit unions accept deposits, make loans, and provide a wide variety of other financial services. But as member-owned and cooperative institutions, we provide a safe place to save and borrow at reasonable rates with exceptional customer service.

Why Choose a Credit Union?

  1. Lower interest rates on loans and credit cards; higher rates of return on CDs and savings accounts. Since credit unions are non-profits and have lower overhead costs than banks, we are able to pass on cost savings to consumers through competitively priced loan and deposit products. The National Credit Union Administration (NCUA) provides a comparison of national average rates on common products offered by credit unions and banks.

  2. Fewer account fees. It’s nearly impossible to find a free checking account at a bank these days unless you are willing to maintain a large account balance. You may also pay an array of extra fees, such as for online or paper statements. Bellco FCU is proud to offer its members several attractive checking and savings accounts that all feature:

    • No monthly service fee

    • No (or a very low) minimum deposit to open account

    • No minimum balance requirements

    • Free online banking with bill pay

    • Free mobile banking

    • Free e-Statements

  3. Nationwide ATM Access. Although most credit unions have a limited number of branches, being a member gives you access to a nationwide network of thousands of surcharge-free ATMs. You may also be able to collect refunds on some of your non-network ATM fees.

  4. Your deposits are insured. Bellco FCU and 98% of the credit unions in the U.S. are insured by the federal NCUA (referenced above), which provides the same protections that the Federal Deposit Insurance Corporation (FDIC) provides to banks – insurance coverage on deposits up to $250,000.

  5. Online banking and mobile apps. There was a time when banks were able to offer services that credit unions could not. But, today Bellco FCU members enjoy fast, free, and easy to use online banking and bill pay services; and three convenient forms of mobile banking via web browsing, app download, and text banking.

  6. Friendlier service. Some banks are notorious for treating their customers as little more than profit magnets. Bellco FCU employs dedicated and experienced professionals who genuinely listen to your needs and offer solutions with the compassion of a true neighbor.

  7. Easy to join. All credit unions have rules about who is eligible to join, but you may be surprised how easy it can be to become a member! Bellco FCU offers membership to people who live, work, worship, or attend school in Berks County, including immediate family members, such as your spouse, children, siblings, and parents.

When you need a loan or a new account and don’t know where to go, consider these 7 ways that credit unions are better than banks and visit Bellco FCU to find out about our wide range of financial products and services!