When you join a credit union, you open the door to numerous possibilities. That means becoming a valued member rather than just being seen as a customer account number. Credit unions are different from traditional banks. They allow you to participate in a portion of ownership for that financial institution, and, as a result, that may mean lower fees and better access to the features you want.
Before you open a credit union account, it helps to know as much as possible about the institution, the services provided, and any fees associated with the process. Also, note there may be some credit union requirements you must meet to become a member. Let’s look closer at HFS Federal Credit Union and what you can expect before you learn how to open a credit union account.
Understanding Credit Unions
A credit union is a type of financial institution. Most are not-for-profit organizations. They offer services similar to traditional banks, including deposits, loans, bill payments, and other standard banking features. With a credit union, you’ll be a member rather than a customer, which means you are a part owner of the organization. Depending on the type of credit union and its specific bylaws, you may have voting rights on the decisions that impact the organization.
A credit union’s primary advantage is supporting the well-being of its members. This happens in various ways, including paying members back when profits are made. It could also be done through reduced fees, lower interest rates on credit cards and loans, or higher savings rates.
The only limitation of a modern credit union is that you may have to meet specific eligibility requirements. You must be within the “field of membership” the credit union supports. That could be based on your employer, family, geographic location, or other formal associations.
What Makes Credit Unions Unique?
Many credit unions focus on supporting the well-being of their members. Though the benefits they offer may differ from one to the next, some of the best features are the simplest. For example, instead of paying high fees to access your money through your bank account, you can support a not-for-profit organization that keeps your fees lower.
Also noteworthy is that most credit unions provide personalized service and have a community focus. We are in your community and made up of people who also support your community. Being greeted by name and getting to know the people working for the credit union is often possible. You’re more than just a number.
Comparing Credit Unions to Banks
Credit unions are different in their structure from banks. While some may not offer the same services and features as a bank, many offer the modern features you may be looking for and even more.
Most credit unions offer savings and checking account options. They also offer credit cards, real estate, personal, and vehicle loans. They may offer retirement and savings accounts or specialized investment opportunities.
One thing about a credit union compared to a bank is the difference in fees. Banks charge fees that help the financial institution to meet profit objectives. To increase profit, fees go up. With credit unions, the goal is not to turn a high profit but instead to help the credit union members obtain lower fees. That often means lower interest rates on borrowing, lower fees for checking accounts, and higher deposit interest rates. It’s always important to consider individual providers carefully and know that not all banks and credit unions offer the same structure, services, or costs.
Joining a Credit Union
Now that you have a good idea of the benefits of joining a credit union, it’s time to consider how to do so. What do I need to open a credit union account? Let’s break down the key elements for opening a credit union checking or savings account.
Researching Credit Unions
The first step is to meet the credit union membership requirements. This differs from one to the next. Every credit union determines membership based on some underlying factors. That could be where you live, the associations you are involved in, or where you work.
Meeting Membership Requirements
Find a credit union that is local to you that you are eligible to be a member of based on your affiliations. Ensure you meet the credit union’s requirements, including financial goals and needs.
At HFS FCU, our membership guidelines are versatile. Some of those requirements include:
- A person who lives on the Island of Hawaii.
- A person who works, attends school, worships, performs volunteer service, or participates in organizations headquartered on the Island of Hawai’i.
- A person participating in programs to reduce poverty or distress in the state.
- Those incorporated or unincorporated organizations located in the state.
- Spouses of those who died while within the field of members of the credit union.
- Employees of the credit union.
- Members of their immediate families or households.
Applying for Membership
In most situations, applying for membership to a federally insured credit union only takes a few minutes. The process is much like what you could expect at any financial institution. You’ll need to correctly identify yourself and your ties to the community. You also need to provide information such as your Social Security number. Make sure you have a photo identification.
Completing the application in person is easy. The credit union staff will help you by answering any questions you have.
Making Your Initial Deposit
To open an account with us, you’ll need to make an initial deposit. That may be done through cash, a check, or a paycheck from your employer. This happens after your membership application is received and approved.
It’s also an excellent time to ask about any fees or minimum balance requirements that may apply in your situation. That depends on the credit union and the type of account you set up.
Benefits of Credit Union Membership
Now that you know how to get into a credit union, your next question may be why do so. There are various benefits to working with a credit union, including:
- Lower interest rates when you borrow money
- Higher savings yields when you invest with us
- Better personalized service
- Access to the account types and features you need and want
- Access to community events and being a part of supporting the local community
Exclusive Member Offers
Another perk of being a credit union member is access to special offers or membership-exclusive perks. These could include discounts on local services and providers or a rewards program. These differ from one credit union to the next, but our team is always readily available to answer any questions.
Credit unions also strongly focus on financial education. This means you gain access to financial education resources that could help you make better financial decisions.
Member Engagement Opportunities
There are many reasons to want to be a part of a credit union; sometimes, it comes down to engagement opportunities. Your opinion, needs, and goals are essential to your credit union. Though the various resources available could change from one organization to another, you can always expect access to fantastic perks and features.
For example, suppose you are thinking about opening a business or buying a home. In that case, you gain insight from experienced professionals within our organization who can offer options and educate you on various events. More so, your credit union is likely giving back to the community in ways specific to what your community needs. That could be in local food drives, charity events, school-support programs, or other activities. As a member, you can help make a difference.
FAQs About Joining a Credit Union
What are the advantages of joining a credit union over a traditional bank?
Credit unions are not driven by increasing profit margins but by providing members with personalized financial services and support. That often means lower interest rates and fees while offering a higher savings interest rate. Credit unions offer more community engagement opportunities.
How can I find a credit union that fits my personal or professional affiliations?
Credit unions can be found through various tools and resources. Speak to us about our services and opportunities. If you’re not local to our location, use MyCreditUnion.gov to find credit unions available near you. That’s a website sponsored by the National Credit Union Administration, a US government agency.
What is the typical process for applying to become a member of a credit union?
Applying to be a credit union member typically means coming into the location, answering questions about your needs, and then filling out an application. There are no costs or tricky questions to worry about during this process. You will need to show identification and meet the requirements set by the credit union, such as proving where you live or your affiliation. You can visit the credit union’s website for more information on the process.
Are there any special requirements or fees associated with joining a credit union?
There are no fees associated with joining most credit unions. However, you must meet any requirements the credit union sets when qualifying for membership.
Can I still access online banking or mobile services as a credit union member?
Credit unions are modern financial institutions. You have options like online banking, mobile services, and much more. Some credit unions offer the same or better features than traditional banks.
What are some common misconceptions about credit unions that should be addressed?
Credit unions are easier to join than many people realize, and they tend to be a more affordable option. Modern credit unions offer the same features and banking options while offering many modern investment tools. In short, it’s a bank that does not treat you like a customer but a member.
How does being a member of a credit union benefit the local community?
Credit unions give back to the community through lower loan interest rates, community programs and initiatives, and support for people who live within the community. You’ll find various programs throughout the year to help support community needs and goals.
Start Your HFS FCU Membership Now
You can join a credit union to reap all of the benefits offered. Nothing is challenging or hidden in this process. To open a credit union account, contact HFS FCU today. You can visit one of our locations or get started with some information online. Contact our team now.
