Why Texas Residents Should Switch to a Credit Union

 Why Texas Residents Should Switch to a Credit Union

Credit unions are a great alternative to the traditional bank. People that have always put their money into traditional banks typically do not realize what they are missing. Residents that live in the state of Texas have many options because the state is so big. These are consumers and homeowners that should definitely give credit unions a serious look because people that fail to do this are losing a lot of money.


People that have already become Texas Credit Union members are well aware that there is a great benefit to getting established with a nonprofit organization. One of the biggest things that people will notice quickly in any credit union presentation is the word nonprofit. Most bankers are not going to give this much consideration if they have never known about the differences between traditional banks and credit unions. 

Once people receive a presentation on this they begin to realize that the credit unions are not-for-profit. This means that people that sign up to become members at these credit Unions will often receive dividends when there is a profit. This money is shared in the form of dividends between members. The fact that this is a non-profit banking institution is quite significant because it cuts down on fees.

Reduced Fees

Those Texas residents that sign up to become part of a Texas Credit Union will quickly notice that fees for things like bounced checks are lower. There are going to be fewer fees that are associated with overdrafts. There may also be no minimum balances required for some of these checking and savings accounts with credit unions. People that go to traditional banks are typically going to be stuck with accounts that have a minimum balance. A fee will then be incurred if the account is ever below this balance. That is one big reason why Texas residents take a second look at the credit union as a better option for their banking needs.

High Interest-Bearing Accounts

Credit unions are going to have some options for high yield banking accounts. That is something that people definitely look to when they want a safe space for cash that they are not necessarily going to invest. 

People that are saving for retirement will definitely have money in a portfolio that may be split between certificates of deposit and stocks, but these same banking customers may also have a significant amount of cash that they want to keep accessible for emergencies. They do not want incur fees with withdrawals from retirement accounts every time that an emergency arises. This is why they may keep this in a savings account in traditional banks.

The problem with this is that traditional banks have become notoriously known for low-interest rates that pay little or nothing. There is a significant increase in the interest rate for people that have to check and saving account with credit unions.


A number of people that are looking for a decent interest rate on their next loan will benefit from credit unions as well. While the interest is high on accounts that you deposit money into, rates are going to be lower on loans where you are acquiring money.

When people look at the options that they have with saving money on fees and acquiring interest on money that they already have by way of high yield accounts it seems impractical to stay with the traditional banking institution. 

The logical choice for most Texas residents that compare the two will be to transfer money to a credit union. Banking customers that want to manage their money smartly are going to see this as the better choice.


Elyse Sanford