GFA Federal Credit Union

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  • Apr 28, 2022

Differences of Credit Union Checking and Savings Accounts

Opening an account is easy. Here are the differences of credit union checking and savings accounts.

Opening a savings or checking account is a no-brainer. You want a place to put your hard-earned money while tracking your spending. But do you want to open a checking account or savings account? Additionally, do you need both? Here are a few differences of credit union checking and savings accounts, along with knowing if you only need one or both. Having a reliable location to hold your hard-earned money shouldn’t come with hurdles.

Credit Union Checking Account

A credit union checking account allows you to manage your money while handling your expenses safely and conveniently. They reside in non-profit institutions that members own together.

While there aren’t many differences between banks and credit unions, credit unions come with many benefits, including lower fees and better interest rates.

Credit Union Savings Account

A credit union savings account allows you to grow your savings safety and securely. Due to credit unions being non-profit, you won’t have to worry about paying high fees while being provided interest and rewards.

A major difference between credit union checking and savings accounts is that savings accounts help accumulate money over time, while you can use a checking account to pay off bills and other expenses. Luckily, the pros of having a credit union savings account outweighs the cons.

Some benefits that come with credit union checking and savings accounts include lower rates and higher yields. Additionally, there are lower payment fees, a variety of products a member can choose from, insured money, and excellent personal service. Lastly, savings accounts allow for higher interest rates while you save money, promoting the growth of your wealth over time.

However, you have to become a member to open an account. If you do not already have a family member who is already a member, or a relationship with a partner organization, GFA will help you set up a relationship at no cost to you.

Do You Need Both?

Ideally, it’s best to have both a checking and savings account, especially if you have a family. Not only will you have a checking account for paying bills and other expenses, but you’ll also save your money and allow it to build at the same time. It will help with long financial health expenses while having additional savings to make big life purchases.

It doesn’t have to be complicated to open a credit union account. If you are looking into credit union checking accounts in Massachusetts, look no further than our own at GFA Federal Credit Union. We provide perks and benefits to help you stay on top of your payments while building your savings. Contact us today with any questions, or to open an account!

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