Are credit unions better than banks for building up your savings? With higher interest rates and a members-only structure that gives each customer more power over their money, there are plenty of reasons why you might want to use a credit union savings account to help build your wealth or to simply set aside funds for a rainy day.<\/p>
There are a lot of credit unions in Canada to choose from, which altogether hold billions of dollars in assets. You might\u2019ve heard of some of the biggest players in the game: Vancity, Coast Capital Savings, Servus, Meridian and Assiniboine, among many others.<\/p>
Sometimes referred to as a \u201ccooperative bank\u201d or \u201cpeople\u2019s bank,\u201d a credit union is a nonprofit member-owned financial institution offering similar financial products to banks. Members\u2019 pooled resources often result in lower fees and better rates than typically offered by banks.<\/p>
You usually must purchase a small number of \u201cshares\u201d in the union\u2014typically between one and five shares\u2014to become a member. Shares can be priced between $5 and $25. Keep in mind that low-income account holders may request accommodation\u2014to waive the cost of a membership share purchase\u2014if they can\u2019t meet the minimum purchase requirement.<\/p>\n<\/div>\n
Credit unions were initially created to take away high fees and barriers to banking. Over five million Canadians prefer these institutions over big banks. Some credit unions are made only for certain groups of people (such as agricultural workers or teachers) or people living in specific regions.<\/p>