Is it better to open a savings account at a credit union?
Opening a savings account at a credit union in Canada can be advantageous depending on your financial needs and preferences. Credit unions often offer competitive benefits compared to traditional banks, but there are also some considerations to weigh.
Credit unions often offer higher interest rates on savings accounts compared to traditional banks. This can result in better returns on your savings. They typically have lower fees and fewer service charges than banks. This can include lower fees for account maintenance, transactions, and overdrafts.
Credit unions may offer more flexible terms and conditions for savings accounts and other financial products, tailored to the needs of their members. They are member-owned and often provide more personalized customer service. They tend to focus on the needs of their members rather than profit.
Byt credit unions also may have fewer branches and ATMs compared to large national banks, which could be inconvenient if you need access to physical banking services. Some credit unions may have less advanced online banking platforms or mobile apps compared to larger banks. However, many are improving their digital offerings.
To open an account, you may need to meet certain membership requirements, such as living in a specific region or working in a particular industry. Credit unions might offer a narrower range of financial products and services compared to large banks. This could be a consideration if you need specialized financial products.
As an alternative, you can also take out a personal loan. Your possible expenses:
Personal loan calculations for 1 year (example)
| Amount, $ | Rate, % | Accrued %, $ |
| 20,000 | 7.55% | 818 |
| 20,000 | 10.55% | 1,143 |
| 20,000 | 13.55% | 1,468 |
| 50,000 | 7.75% | 2,099 |
| 50,000 | 10.75% | 2,911 |
| 50,000 | 13.75% | 3,724 |
| 100,000 | 7.95% | 4,306 |
| 100,000 | 10.95% | 5,931 |
| 100,000 | 13.95% | 7,556 |
| 200,000 | 8.15% | 8,829 |
| 200,000 | 11.15% | 12,079 |
| 200,000 | 14.15% | 15,329 |
What credit union offers the best high-interest savings account?
It can vary based on your specific needs, such as account features, fees, and access. Here are some credit unions known for offering attractive high-interest savings accounts:
- Vancity Credit Union
- First West Credit Union
- Alterna Savings
- Dairy Farmers of Ontario (DFO) Credit Union
- Oaken Financial
- Tandia Financial Credit Union
- Meridian Credit Union
- Caisse Desjardins
You can see the similar FAQ at the link:
- Financial calculators from B2B bank
- How do I apply for a CIBC personal loan?
- How do I apply for a line of credit from CIBC?
- How to apply for a loan from B2B Bank online?
- How to apply for line of credit from BMO Harris?
Details of companies offering the financial services:
East Coast Credit Union
Head office’s address: Antigonish, NS, Canada, Nova Scotia
Contact center: 866-230-7700
Web-site: https://www.eastcoastcu.ca/Home/
Provincial Credit Union
Head office’s address: 281 University Ave. Charlottetown, PE C1A 4M3
Contact center: 902-892-4107
Phone: 902-629-1924
Web-site: https://www.provincialcu.com/Home/
Servus Credit Union
Head office’s address: 51 Karl Clark Rd NW, Edmonton, AB
Contact center: 877-378-8728
Web-site: https://www.servus.ca/
Windsor Family Credit Union
Head office’s address: 3000 Marentette Ave (Corporate & Administration Office), Windsor, ON
Contact center: 519-974-3100
Web-site: https://mywfcu.ca/