Are you interested in saving money? There is no better way to save money than opening a savings account, especially if you do so at a credit union that typically pays higher interest rates. You are twice as likely to open a free checking account at a credit union, more so than at other types of financial institutions. The same goes for offering free savings accounts.
Why Use a Credit Union?
Credit unions are actually a great place to do many different types of financial processes such as applying for an auto loan, business lending, getting a credit card, opening a checking account, investing in share certificates, getting a recreational vehicle loan and opening a savings account. Their interest rates tend to be competitive so you get some of the best interest rates available. You will also be keeping your banking business local since often a credit union is a local institution that keeps your money within your community. It is typically known as a customer-owned financial institution.
How to Open a Savings Account at a Credit Union
Opening a savings account at a credit union does not have to be difficult. Sure, some terminology may be different, but it is easy to learn and understand. When “membership” and “eligibility” are brought up, most people believe the process is going to get complicated. Nothing is further from the truth. There are actually three simple steps when it comes to opening an account. 1. Meet requirements for eligibility, which is easier than it seems. 2. Make a rather small deposit often anywhere between $5 to $25 dollars so you can become a member. 3. Use your account.
Membership Has Its Perks
You have more than likely heard the phrase, “Membership has its benefits.” This is especially true when you open a savings account at a local credit union. In order to become a member, you have to become part of their field of membership. Usually this entails having a common bond with other members. Potential factors include sharing the same employer, living in the same community, your type of occupation and even family members can help you join their credit union.
You could also join an organization that makes you eligible to use certain credit unions. There are also credit unions that are open to just about any one. Some organizations tend to be free to join while others require a modest donation.
Details You Will Need to Share to Open an Account
As with most types of accounts, you will need to share some detailed information in order to open a savings account at a credit union. This can include your social security number, a physical address, identification that is valid such as a passport, driver’s license or government-issued identification and a reason why you are eligible to join.
Make an Initial Deposit
Once you have joined a credit union and opened a savings account, you will need to make an initial deposit. An initial deposit represents your purchase of a share in a credit union. Deposits can be made however you desire by writing a check, using cash, transferring funds from a different bank or by using a debit card from another banking institution. It is always a good idea to know all of the terms for a savings account including the minimal amount of money that needs to remain in the account at all times.
Start Using Your New Account
Once you are a member, you can start using your account as well as all of the other services offered by a credit union. Consider setting up direct deposit with an employer so earnings go directly into savings with a debit card tied to the account if you want. Ask your credit union about the specific details that allow you to start using your account immediately.