Credit Union vs Bank: Which is Best for Your Teen
Blog Highlights:
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Credit unions are not-for-profit, while banks are for-profit businesses.
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Teen credit union members can become more financially savvy, setting a strong financial foundation.
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Credit unions provide robust tools and resources to help teens make smart financial decisions.
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Credit unions generally offer better interest rates, lower fees, and more personalized service than banks.
Understanding the Basics: Credit Union vs Bank
Teens today have a choice when it comes to deciding where to open an account to best manage their money. While most are familiar with banks, another great banking option for teens is your local credit union. When it comes to credit unions versus banks, there are some things to consider about the two financial institutions. Let’s take a closer look at why credit unions like Allegiance are an excellent choice for teens.
Definitions and Core Differences - Credit Union vs Bank
When it comes to credit union vs bank options, the main difference is that credit unions are not-for-profit organizations, while banks operate strictly for profit. Since large banks are publicly traded institutions, their main goal is to make money for the shareholders. Credit unions, however, are owned by the members who are considered shareholders with the main goal of financial well-being for all.
Why Credit Unions are a Win for Teens and Families
Due to the not-for-profit operating status of credit unions, they have the best interest of your particular community in mind, while also offering accounts and services tailored to parents and teens' needs.
Personalized Banking with Better Benefits
- Competitive Interest Rates – Find low interest rates on loans and credit cards as well as higher interest rates on deposits at a credit union versus a bank.
- Low Fees – Credit unions may also offer lower and fewer account and loan fees than banks.
- Personalized Customer Service – If you’re looking for top-notch customer service, a credit union is the right choice. The local, friendly, and personalized approach of Allegiance allows teens with little to no financial experience to learn about the products and services available.
The Allegiance Advantage for Teen Account Holders
The team at Allegiance is here to help teens with their financial education, so they are on the right path for financial independence. Starting their financial journey with an Allegiance Teen Checking Account is the perfect way to teach them smart money moves to manage their money. Their experience with the credit union not only makes them more financially savvy but lays the foundation for a strong financial future.
Setting Up for a Brighter Financial Future with Allegiance Credit Union
Allegiance Credit Union is here to help create a brighter financial future for teens. Here are some of the programs at Allegiance Credit Union to help them successfully open and maintain their money accounts.
- Youth Checking Accounts: Created just for teens, Allegiance Credit Union offers dedicated youth checking accounts. The Teen Checking Account is for teens from 14-17 and helps build a solid financial foundation. Debit card access, mobile banking app, and no monthly fee are just a few of the amazing features this account offers. Help your teen gain freedom while still enjoying parental oversight and control.
- Mobile Banking: Designed to keep your teen connected to their finances no matter where they are, the Allegiance Credit Union Mobile Banking App offers easy account. From account alerts and credit monitoring to card control options and sending electronic funds, Allegiance Credit Union Mobile Banking App lets teens track their money anytime.
- Free Money Management and Credit Counseling: Allegiance Credit Union offers free money management and credit counseling for teens to help them learn smart money moves for a successful financial future.
- Mobile Wallets: Contactless transactions that teens like to use are available for Allegiance Credit Union members and offer the extra security of using a mobile wallet like Google, Apple Pay, Zelle®, and Samsung Pay. And since the encryption and data technology in the chip protects your accounts from fraud because no card information is stored on your devices, the transactions are much safer.
Long-Term Benefits of Choosing a Credit Union
Teens who start their financial journey with an account at Allegiance will be rewarded with a lifetime of support and personalized customer service. These are benefits that come with being a member of a credit union vs bank that allows teens to learn and grow with the institution and build a relationship for all of their present and future financial needs.
Supporting Financial Independence from the Start
- Fostering Financial Independence with Education: The financial choices teens make now can have a huge effect on their future. Learning and understanding how important financial education is now can help teens stay in control of their money and build a credit history and savings account for the future.
- Offering Tools and Resources: Allegiance is here to help create a brighter financial future for teens with a variety of tools and resources to prepare them to make smart money moves.
Credit Union vs Bank: How to Choose the Right Fit for Your Teen
Choosing the right financial institution for your teen is an important decision. Making sure they feel comfortable and confident when using their new accounts and feeling free to ask questions is crucial.
Choosing a credit union vs bank is a great option when teens are new to banking because a friendly face at their local credit union who is going to offer them guidance and assistance with their new accounts is priceless. Larger corporate banks may leave them feeling intimidated or left on hold for account questions.
Why Allegiance is the Smart Choice for Your Teen
The team at Allegiance Credit Union is here to help teens with their financial education and to help them get on the right path to financial independence. Not only do we offer Teen Checking designed just for them, but we also care about their long-term financial health by educating them about finances. We are ready to help your teen achieve their financial goals and build relationships to help them succeed as they grow and in each new phase of life.
Become a part of Allegiance today by opening an account for your teen and feel what it is like to be truly accepted, no matter what your financial situation may be.