SAFE July 22, 2020 at 8:30 AM

Bust Credit Union Myths to Make Smarter Money Moves

In uncertain times, it might seem like the smart play to sit tight with your money. But inaction is costly. Getting over the barrier of switching from an impersonal big bank to a caring credit union is tough, but it can connect you to a movement centered on the mission of people helping people. To help you leap over those barriers, we’ve covered some common credit union myths to show you what credit unions are really like. Read on to discover how credit unions can help you save faster and take your money further.


Myth #1: Credit unions are riskier than banks

Credit unions are just as secure and protected as banks, which means that during these uncertain times, having your money in a credit union is just as safe and secure as if it were in a bank. Deposits in a bank are insured by FDIC while deposits in a credit union are insured by NCUA up to $250,000. Plus, credit unions use the latest technology and processes to ensure your data and money are protected against breaches, fraud, hacks, and theft. Really, the biggest risk of all is in allowing your money to earn less than it could for you. Sticking with the status quo and accepting big banks’ impersonal service, along with lower savings dividends and higher loan rates, may be costing you more than you think.


Myth #2: Lower rates from a credit union won’t make a difference to my debt

You can crush your debt with a credit union! You work hard for your money. Now it’s time to make your money work hard for you. As nonprofits, credit unions are in the unique position of being accountable to their members rather than shareholders. This means that members benefit from profits reinvested into low-fee and no-fee financial products. Even a small percentage-rate improvement can make a big difference over the lifetime of your debt.

If you’re concerned about mounting bills and debts, talking to a real person can make you feel in control and better prepared for the future. And credit unions are great at making people feel like part of the family rather than just a number. Help is available now, even during social distancing. From social media and chat to phone support and branch appointments, credit unions go above and beyond for their members and communities.


Myth #3: Credit unions don’t offer the latest trends like micro-saving and digital wallets

Credit unions DO offer micro-saving options through checking or savings accounts, depending on the credit union. Micro-savings, where expenses are rounded up to the nearest dollar and the small difference is shifted automatically to your savings account, can start to add up quickly, without you having to think about it. Everyone knows they should be saving more for the future, but it’s hard to think about that right now when there’s so much uncertainty. Micro-savings with credit unions actually help people save and get to their financial goals faster. For example, SAFE Credit Union offers a micro-savings option with our Perfect Cents Checking—a solution that has helped our members save $11 million in 2019 alone. Credit unions also offer a full suite of mobile and online banking features, digital wallets, and voice banking with Alexa. It’s true: credit unions deliver on top personal finance trends, helping you save when you need it the most.


Myth #4: Credit unions are only for personal banking

A number of credit unions DO offer business banking to support their community of local business owners. In fact, during the past few months, California credit unions have extended over $2.3 billion in business loans and helped their members secure $656 million in SBA Paycheck Protection Program loans. Business loans, business checking, business savings, business money market, and business certificates—you name it, credit unions offer it.


Myth #5: Credit unions are only for mortgages and car loans

This one’s an undeniable fact—credit unions do have great rates on mortgages and car loans! But, we are also have so much more than that. From cash reward credit cards to money market accounts to investing options, credit unions are here to help you master your money.

Myth #6: It’s too hard to join

Join millions of Americans who are saving more with a credit union. And, if you work or live within our geographical reach (includes Sacramento, Placer, El Dorado, Yolo, San Joaquin, Contra Costa, Solano, Yuba, Sutter, Butte, Nevada, Alameda, and Amador Counties), you are eligible to join SAFE Credit Union. Join a community of 226,000 members all working toward a safe and secure financial future.


Try opening one account to see the credit union difference.

Open your eyes to a credit union like SAFE.


Insured by NCUA



SAFE Credit Union has served its members with integrity, exceptional service, innovative products, and progressive technology since 1940.