Plymouth, MI (April 2, 2025) |
With economic uncertainty rising and recession worries echoing through the news and daily conversations, average folks are increasingly concerned about how to keep their money safe and maintain their financial stability.
One clear answer is credit unions. Credit unions are member-owned, not-for-profit financial cooperatives built to serve working people, families, and local communities. In an increasingly volatile economy, consumers can trust credit unions to keep their money safe and put their well-being first.
Here’s why:
- Not-for-Profit Structure: Unlike big banks, credit unions are member-owned, and not-for-profit. This means they serve their members — the local folks with checking and savings accounts, loans, and mortgages — not Wall Street shareholders demanding quarterly profits. All credit union earnings are returned to their members through lower loan rates, higher savings yields, reduced fees, and even dividend payments.
- Financial Benefits for Members: Because they're not focused on making profits, credit unions offer better deals to their members. These savings add up and have a real impact on people's lives. For example, credit union members can save an average of $138 a year on a $25,000 car loan. These benefits are not just for members, either, because competition from credit unions pressures larger banks to offer lower rates and fees to their customers as well.
- Serving the Underserved: Credit unions often serve communities that are neglected by for-profit institutions. They maintain branches in rural areas and on military installations where big banks might not find it profitable to operate. They focus on helping those of modest means, offering financial services to people who might otherwise be left behind. Credit unions are often the only local branch available in underserved areas, preventing communities from becoming banking deserts.
- Community Impact: Credit unions reinvest their earnings into the communities they serve. They are more likely to partner with and support local events, organizations, and initiatives. They are also a crucial source of credit for small businesses. In many cases, credit unions were the only institutions there to help small businesses access critical loans during the worst of the Covid-19 pandemic.
- Military Support: Defense credit unions play a special role in ensuring the financial well-being of service members and their families, operating on military bases and providing essential financial services to those who serve. Credit unions offer tailored products and services like low-interest loans and financial education to help military members reduce financial stress — in good times and bad.
- Growing to meet the need: Credit union membership is steadily rising, underscoring the value of tailored financial options and local, personalized service. As credit unions grow, more Americans realize the benefits that make them different from their for-profit counterparts.
Credit unions provide affordable financial services, support local communities, and serve everyday Americans otherwise underserved by for-profit banks — and they always will. In times of uncertainty, families can trust credit unions to provide the security, stability and service they deserve.