Credit Union Myths Busted!

I read a great article from Money Magazine (September 2009) by Maria Bekiaris about Credit Union Myths and I thought it would be great to share a summary of this with you;

Myth 1- I have to be a member of a particular group to join
Although a few credit unions are still ‘bonded’ meaning they are only open to certain people working in a certain industry or for a particular employer, most credit unions and building societies are open to everyone. If you do join a credit union you’ll have to buy a ‘share’ that will set you back somewhere between $2 and $10. If you leave the credit union you’ll get this back. Mutual building societies on the toher hand generally done ask you to buy a share.

Myth 2- The products are not as good as the banks
Whether you want a home loan, transaction account, personal loan, credit card or savings account, chances are a credit union will have something to suit your needs and often they’ll pay a better rate or charge lower or fewer fees.

Myth 3- They’re not as safe as banks
All credit unions meet the same high standards as banks and are covered by the same protections. Credit Unions and Building societies are governed by APRA (Australian Prudential Regulation Authority) and therefore follow all the same rules and regulations as other authorised deposit taking institutions (ADI’s) such as banks.

Myth 4- Its too tough to access my money
You can definitely cross this one off your list! The combined rediATM and NAB ATM network is over 3,100 ATM’s nationally.

Myth 5- Switching is too hard
One reason many of us stay with our current institution is that it seems too much of a hassle to change. This is especially the case when it comes to transaction accounts- particularly if you have direct debits or periodic payments coming out of the account. The good news is the government has introduced measures that are intended to make it easier to switch from one institution to the other, and both the institution you are leaving and the one you are moving too have to help you.

There are 117 credit unions and 8 building societies across Australia- so there are lots to choose from!

September 8th, 2009 | Leave a Comment »