Presented by Philadelphia Federal Credit Union
Whether you’re in the very beginning stages of opening a business or are already running a successful venture, one thing is certain – you need to know how to manage your money. What you may not know, however, is that a traditional bank could be eating into your hard-earned dollars. So what’s the alternative?
Lending choices that help your business and your community thrive. Savings and checking accounts with higher yields and fewer (and lower) fees. Convenient cash management services that can help you run things on-the-go. These benefits are possible when you’re a member of a credit union, rather than a customer at a bank.
Credit unions are not-for-profit financial institutions that are member-owned, which means they invest profits in their members in the form of better rates and fewer fees. Banks, conversely, are for-profit corporations that must pay declared earnings to their stockholders. Both offer a variety of solutions to help business owners obtain, manage, and grow their money, but credit unions provide valuable savings opportunities that can help set business owners up for success.
Checking Accounts: Account holders at banks have to adjust to higher minimum balance requirements, but many credit unions offer basic checking accounts with no minimum balance requirements and no monthly fees.
Interest Rates: Credit unions typically offer higher dividend rates and lower loan rates, enabling members to grow savings faster and owe less money over the term of their loan.
Mortgage Loans: Banks usually charge higher fees than credit unions for the same type and size of loan – and, because credit unions are not-for-profit, they return any earnings to members in the form of better rates or reduced fees. This means that your credit union mortgage loan will likely come with lower closing costs and origination fees than a similar kind of loan obtained through a bank.
Still not sure if a credit union is the right choice for you? Stop by Philadelphia Federal Credit Union’s Fishtown branch at 2136 E. Dauphin Street to speak with someone about your options. And be sure to check back here to learn more about business banking – PFCU will be weighing in on common questions to help set you on the right path to grow your business.
This article originally appeared in the Nov. 2, 2017 edition of the New Kensington Community Development Corporation newsletter.