Why Choose a Federal Credit Union Over a Bank
Both banks and credit unions offer products that satisfy the financial needs of their customers. On the surface, credit unions and banks seem the same, but upon closer examination you may notice a few things that make them different.
If you’re looking for a trusted and service-oriented financial institution, consider joining the OnPath Federal Credit Union. We offer a variety of affordable personal and commercial banking products to residents of the Greater New Orleans area.
What Are the Differences Between a Credit Union and a Bank?
Banks are generally owned by various shareholders, such as domestic and international corporations or individual investors and funds if the bank is publicly traded. These shareholders invest in banks to grow their business and increase revenue. Since banks are for-profit organizations, it’s customary for them to charge higher fees and interest rates to maximize profits. This often means higher fees in general, less advantageous interest rates on loan products and stricter thresholds on “free” products.
Credit unions are owned by their members. In other words, if you decide to open an account at your local credit union, you will become a part owner.
The business incentive for a credit union is reversed. Instead of turning a profit for investors, credit unions are more interested in saving their owners/members money. You can expect low fees and interest rates as well as higher interest rates on savings accounts and products.
As a member of a credit union, you also have a say in any changes in policy and leadership.
Who Can Join
Almost anyone can sign up for a membership at the bank of their choice. Membership at a credit union is usually more exclusive. Most credit unions have certain eligibility requirements.
Since credit unions are non-profit organizations with an overarching goal of returning profits to their members and giving back to the community, membership is frequently dependent upon living or working in a geographic location. Other membership criteria may include being:
- An employee of a company who does business with the credit union
- A relative of a qualified employee
- An active or retired service member
- A relative of an active or retired service member
Visit our benefits page to find out if you’re eligible for OnPath Federal Credit Union membership.
Who Insures Credit Unions and Banks?
Both bank customers and credit union members want their finances insured against loss or theft. Luckily both banks and credit unions are insured by government-backed agencies so you can rest assured your hard-earned money is safe.
The agency responsible for insuring banks is the Federal Deposit Insurance Corporation (FDIC), while the National Credit Union Share Insurance Fund (NCUSIF) insures credit unions.
What Are the Benefits of OnPath FCU Membership?
At OnPath Federal Credit Union, we’ve served our members in the Greater New Orleans area for more than 60 years. Whether you’re looking to open a checking account, grow your savings in a Share Certificate account or obtain a mortgage loan for your future home, we’re here to meet your various banking needs.
If you live, work or worship in the Greater New Orleans area, you’re likely eligible for membership with OnPath FCU. Benefits of membership include:
- Competitive rates on loans, credit cards and accounts
- Free checking accounts
- Financial education resources, including one-on-one sessions with financial advisors to help you achieve your financial goals
- Discounts on car and home insurance
- Free and user-friendly mobile app for online banking
- Over 5,000 shared branches and nationwide access to fee-free ATMs
- Select Employee Group (SEG) program which extends membership eligibility to participating business employees and their relatives
- As a local organization, we proudly support small businesses and the local New Orleans and greater Louisiana economy
Become a Credit Union Member Today
OnPath Federal Credit Union members have access to a wide range of personal and business banking solutions. To learn more about how we can help with your finances, call 800.749.6193 or contact us online.