An underused money tool that could help a new generation of adults on their path to prosperity isn't a smartphone app, a virtual currency or a digital payment system.
It is an old-timey credit union.
Credit unions, if you are unfamiliar, are like nonprofit banks. They may not satisfy all your money-management needs, but you are missing out if you are ignoring credit unions, which have great interest rates on auto loans, consumer-friendly checking and savings accounts, and low ongoing credit card rates.
One example: Fully financing a $30,000 new car over five years would cost about $1,250 less in interest with a credit union auto loan compared with a bank auto loan, based on national average rates.
Competitors — megabanks, small community banks and online banks — have their strengths and weaknesses. But this isn't a binary choice: You can use a credit union for the things it excels in and use other financial institutions, too.
Here are six reasons to add a credit union to the mix.
Not a bank. Credit unions have the same basic products and services as banks, and deposits are insured. But you are not just a customer at a credit union; you are a member and part owner.
Personal touch. Consumer Reports said credit unions are among the highest-rated services it has ever evaluated, with 96% of members highly satisfied vs. 80% for the three biggest national banks. Other surveys suggest superior digital communication has helped banks close the customer-satisfaction gap in recent years.
