Discussion-Credit Unions

Though customers look to banks for their financial needs, these institutions are not the only options available. The most attractive institutions to compete with banks are credit unions. They offer the same products as banks do but at more competitive interest rates and generally with no fees. Banks are owned by stockholders and credit unions are formed by customers. Since customers are the owners, there is less pressure to meet earnings and profit targets, and more attention is given to competitive products that are focused strictly on the consumer and the community.

Using the assigned readings for this module, the Argosy University online library resources, and the Internet, respond to the following:

• Differentiate between a bank and a credit union.

• Consider your own financial situation. Explain what financial institution is better suited for your financial position and explain why.

• Identify a credit union in your area of residence that you may be eligible to use. If one is not available in your locality, you may choose one available online. State the eligibility requirements you may or may not meet for this credit union. Consider you have established a hypothetical relationship with a credit union. Explain how you would use the union to best plan your finances.

Having read about banks and credit unions, do the following:

• Identify one large national bank, one regional or local bank, and one credit union in your geographic area or online, if none are available in your locality.

Note: Identifying appropriate institutions will help you complete M3: Assignment 2, So be sure to consider your choices carefully.

As part of your initial post, also respond to the following:

• Post the Web site links for the three institutions you have identified.
• Describe some of the services the institutions offer. Specify the interest rates offered on either savings or loans.

Write your initial response in 1-2 paragraphs. Apply APA standards to citation of sources

Post your response to the appropriate Discussion Area. Review and comment on at least two peers responses. Consider the following:

• Compare and contrast your choice of one type of institution with choices of your peers.
• Discuss reasons for these differences. Include the differences in eligibility criteria.
• Compare and contrast varying interest rates offered by the identified institutions.
• Identify a post which could possibly change your mind about your own choice of institutions.