One of the latest developments concerning consumer credit unions is the introduction of a new interest rate for CD’s. This is an unfortunate move by the largest banking association in the United States, which has been trying to force CD rates to go up since the mid nineties. Although the Federal Reserve Bank of America may be having a hand in this decision, there are several other factors in play as well. And anyone looking to get a CD should understand all of them before proceeding with a purchase.
The Federal Reserve Bank of America’s decision to lower interest rates in an effort to stimulate economic spending and prevent inflation is an obvious one. But the impact of these moves will only be felt by the creditors of CD’s that have not yet raised their rates. In a way, this is good news for everyone. The smaller financial institutions will be able to cover their expenses and the larger banks will receive more CD revenue from customers who pay more in interest.
Why is this good news for you? If your bank is one of the CD members in the Union, then you will automatically enjoy many of the benefits of being a member of a credit union. These include lowered fees, better services, higher interest rates, and more. You will likely have a number of options available to you, so it is never a bad idea to consider a local CD union.
Perhaps you are unsure whether or not you should consider a local Union bank over a national bank. After all, your local banking association probably doesn’t have nearly as many branches as the larger banking institutions do. Additionally, some regional unions may be lacking the technological infrastructure needed to keep up with a highly technological network such as the Internet. But even if your union isn’t located where you live, you can still benefit from its services. Many local banks have online banking capabilities, and they often offer their financial services via email.
In addition to their high interest rates, some unions offer other perks that you won’t find at your bank. They often offer credit cards and check cashing services, which will significantly reduce your need for a bank overdraft. They may also charge less per transaction, because they don’t have to pay for a loan for every transaction. Lastly, some associations will give you an interest rate guarantee, which is a nice perk if you happen to get in a big accident at work. It’s a win-win for you, the bank, and your customers!
You may think that choosing a national credit union over a local one is an easy decision. Think again! First, your local Union may not be as well-organized as the bigger ones, especially if it doesn’t accept most major credit cards and checks. Second, you may not be able to transfer your checking account balances to a credit Union account, which could leave you stuck with high monthly balances. Finally, you may have a hard time getting any sort of debt consolidation loan from a union, even if you’re a member. Finally, you may have a difficult time convincing any lending institution to give you favorable interest rates.
Still want to apply for a card from the Union? Then it pays to contact your bank first. If they don’t approve you, then simply look online for banks that do business with the Union. Many of these institutions may have better rates and terms than the big credit card companies, which will save you both time and money.
Now that you know the pros and cons of opening a new account with the Centralis Credit Union, it’s time to learn the steps required to become an official member. Most importantly, you must complete an application and send it back to the Union. While many members fail to meet the requirements, it does not make you a bad person if you meet the minimum eligibility standards. Once you become a member, you should receive a physical card with your name and picture on it.