You need money. At times, lots of it. And others, just the bare funds to cover the necessities of food, utilities, rent, or a mortgage payment.
You need money to pay for the essentials of living. What are they for you?
To get money, the great majority of people do it by working. If you are self-employed or own a business, it comes from what is “left over” after you pay your expenses for your work. If you work for someone, you get a paycheck.
No matter how you get money, you need a portal to keep it in: a bank, a credit union, savings account—something that has insurance behind each account. Commercial banks are covered by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per account. A credit union account is covered by the National Credit Union Share Insurance Fund (NCUSIF) with $250,000 for each account.
Banks and credit unions have a number of services, including:
• Checking accounts
• Saving accounts
• Certificate of Deposit accounts
• Credit and Debit cards
• Auto loans
• A way to deposit money and pay bills by check or online
• Auto loans, personal loans, home loans, mortgage refinance, and HELOCs
• Loans for business, school, and other consumer needs
• Online bill payment
• CDs, money orders, and safe deposit boxes
• Financial coaching
• Investment services
• Insurance
• ATMs
There is a difference between banks and credit unions. Many large banks have a nationwide system where most credit unions are within the region.
Credit unions are financial institutions owned by their members. They are designed to make money; rather to help the community they reside in. Credit unions often offer competitive or higher interest rates on checking and savings accounts.
Banks are profit centers. Some are private and more community oriented; others are publicly owned via stock. Many pay dividends to the shareholders, usually based on the profitability of the bank’s holding company. They can be a challenge to getting to a decision maker.
In making a decision to where you place your money—convenience, location, hours, and services offered should be on your decision list. And of course, what your personal needs are. It’s always a good idea to ask those you trust who they would recommend.
Patricia Lane Williams, CPA has worked with thousands of men and women sounding the warnings. She is the author of the Amazon bestseller, Money: Get It. Save It. Grow It … Before Debt Steals It.
Her website is www.PatWilliamsAuthor.com.