Bank vs. Credit union
Choosing a bank or credit union can be tricky. A bank is a business that holds onto your money for you and uses it to create profits by investing that money, and loaning it out to other customers. In a credit union when you deposit your money you’re actually buying shares of the company. Rather than being a customer, you’re part “owner”. They both have checking and savings accounts including CDs and specialize accounts. You can deposit your checks and withdrawal money from ATMs, debit, credit cards. Loans and mortgages are all similar. I’m going to be focusing on Tapco credit union because that’s what I would use personally.
Bank of America is the financial institution that my parents use. The benefits of using a bank is that you don’t have to carry large amounts of money in your pockets or worry about how much money you have because it is all taken care of in a bank. Most banks are FDIC (Federal Deposit Insurance Company) whether it’s a savings, checking, trust fund, certificate of deposit or Roth IRA account, it’s insured. Using a banking service like an account is a good way to protect your assets. . A disadvantage can be that you get hidden charges in your account sometimes and that can lead to different penalties in your credit accounts because you didn’t pay for item. My father gets these charges a lot and it turns out it is like an advertisement or hack. So, that is something that you should pay attention to. The danger with either situation is that if money is stolen or lost, it cannot be replaced. Most credit unions are small local institution it can be hard to get your money without visiting a branch. Also, a drawback is that using ATMs and traveling can lead to major fees. Advantage is if your credit union fails, you are protected by the NCUA insurance. Whichever you are using bank or credit union you are insured.
Banks and credit unions have different accounts for different people and needs. For example, Tapco credit...
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