Why a credit union is safer than a bank in a financial crisis

It’s no secret that the economy has seen better days. Inflation has cooled off slightly, but it is still at record highs as salaries continue lagging behind. Interest rates on large loans are also steep enough to drive many would-be borrowers away, while home and auto prices soar.

During times of financial uncertainty like this, it’s normal to be worried about the safety of your own money. Naturally, you want to be absolutely sure your own savings will be secure, even in times of financial crisis.

Credit unions offer unique advantages that can provide greater security and peace of mind during financial downturns. Here’s why a credit union can be a better choice than a bank during a financial crisis.

Member-owned and -operated

One of the primary differences between credit unions and banks is their ownership structure. Credit unions are member-owned cooperatives. This means that, when you open a share account at a credit union, you become a part-owner of the institution. In contrast, banks are typically owned by shareholders who may not even be customers of the bank.

 

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