Service Credit Union on LinkedIn: Business Checking - Service Federal Credit Union (2024)

FAQs

Is it better to use a credit union for a business account? ›

Lower Fees, Higher Savings

These financial advantages make credit unions appealing for companies looking to impact their bottom line. The savings may be substantial—from lower transaction fees to reduced account maintenance charges. This allows businesses to direct more funds toward growth and expansion.

Credit Unions are the only democratically run financial institution. A federal credit union is member-owned and controlled. Member's interests are represented by a volunteer board of directors drawn from the membership and elected by the membership.

Service Credit Union operates 37 branches in New Hampshire, Massachusetts, and North Dakota; and 14 branches serving American military personnel stationed in Germany. Service Credit Union offers deposit accounts, including checking, savings, and money market; and lending products, including auto loans and credit cards.

Credit unions tend to have lower interest rates for loans and lower fees. Banks often have more branches and ATMs nationwide. Many credit unions have shared branches and surcharge-free ATMs provided through the CO-OP Shared Branch network. Banks have historically had better technology online and for mobile apps.

Limited accessibility. Credit unions tend to have fewer branches than traditional banks. A credit union may not be close to where you live or work, which could be a problem unless your credit union is part of a shared branch network and/or a large ATM network such as Allpoint or MoneyPass.

Get the best rate — and pay lower fees.

As a non-profit, cooperative organization, credit unions are exempt from paying federal or state income taxes. Their non-profit classification enables them to pass would-be profits on to you in the form of lower lending rates and fees!

Like banks, which are federally insured by the FDIC, credit unions are insured by the NCUA, making them just as safe as banks.

Because credit unions are member-owned and -run, they can often offer higher interest rates on deposit accounts than many banks. Credit unions are also exempt from federal taxes, allowing them to pass along those savings to members.

What are the three largest credit unions? ›

The five largest credit unions are Navy Federal Credit Union, State Employees' Credit Union, PenFed Credit Union, SchoolsFirst Federal Credit Union and Boeing Employees Credit Union. The largest, Navy Federal Credit Union, has more in assets than the rest of the top five combined.

1. Navy Federal Credit Union. Navy Federal is the largest credit union in the country. It has around 355 branches (which rivals one or two of the biggest banks in the U.S.), mainly in the Northeast, and more than 13 million members, totaling $151.4 billion in deposits.

Basics of Blacklisting: Blacklisting frequently results from poor money management, loan defaults, or a history of late payments. These bad ratings are reported to credit reference organisations, which lowers your credit score and makes it harder for you to get loans and even bank accounts.

Better interest rates: Credit unions typically offer higher interest rates on savings accounts because they have lower overhead costs than banks. Similarly, they offer lower interest rates on loans. Customer service: Credit unions pride themselves on offering better customer service than banks.

The interest rates offered at banks and credit unions differ because of their profit versus nonprofit business models. In many cases, credit unions will offer significantly lower interest rates on lending products than banks that are trying to turn a profit, but higher rates on savings products.

If you want higher deposit rates and don't need access to branches across the country, for example, you might prefer a credit union. If you want access to in-person services and don't mind lower interest rates, a bank might be more suitable.

The main benefits of a credit union compared to a bank are that credit unions tend to offer better rates, better customer service, and lower fees. However, banks may offer more branches and products than credit unions.

Since credit unions are member-driven and not for profit, members receive higher interest rates on savings, lower rates on loans and lower fees. On the other hand, profits made by banks are only distributed among their shareholders, meaning that the money banks make isn't returned to the people they make it from.

Business bank accounts help build a strong payment history and improve the chances of getting approved for loans and other forms of financing. To help establish credit for your business, you can apply for a free D-U-N-S number. This D-U-N-S number is used by business credit reporting agencies to identify your business.