Why to open accounts in credit unions in Canada?

Why It's Better to Open Accounts with Credit Unions in Canada Instead of Big Banks

Credit unions in Canada are financial institutions owned by their members (the customers). Unlike big banks, where the primary goal is to generate profit for shareholders, credit unions exist solely to serve their members. This makes them a great option for handling your finances. Plus, most credit unions, like banks, are insured against bankruptcy by either the province or the federal government (similar to CDIC for banks).

Here are a few reasons why opening an account—whether it's a savings account, a mortgage, or an investment—with a credit union can be a better choice.

1. More Personalized Service

Credit unions tend to be smaller than big banks, which allows them to provide more personalized service to each customer. In big banks, you might feel like just another number, but in a credit union, they’ll treat you like a person, not just another account generating revenue. Credit union staff usually know their members better and can offer tailored services, quickly solve issues, and answer questions.

2. Profit Sharing Programs

Some credit unions not only generate profits—they share those profits with you. With profit sharing programs, when the credit union makes money, members get a portion of those profits. This can come in the form of bonuses, cashback, or dividends.

For example, some credit unions that offer profit sharing include:

• Servus Credit Union gives cashback on loans, deposits, and even everyday banking transactions.
• Synergy Credit Union shares 20% of their profits with members based on how much they've borrowed or deposited.
• Access Credit Union distributes bonuses to its members.
• Lakeland Credit Union offers one of the highest percentages in profit sharing.
• Christian Credit Union pays dividends on shares and bonuses on loan interest.

3. Lower Loan Interest Rates

Credit unions often provide lower interest rates on loans, including mortgages and personal loans. Because they work for their members, not for shareholders, they can afford to reduce rates and make borrowing more accessible. If you're looking for a loan with a better rate, a credit union could be your best option.

4. Higher Interest Rates on Savings Accounts and GICs

If you're saving money, credit unions often offer higher interest rates on savings accounts and GICs (Guaranteed Investment Certificates). Plus, just like with banks, your deposits are insured by either the province or the government. You can usually find details about this by looking up "Deposit Guarantees" on the credit union's website.

In conclusion, we can say that credit unions offer many advantages, from personalized service to financial perks like profit-sharing programs. If you’re looking for not just great service but also financial benefits, a credit union might be the perfect fit for you.
The downside? If you prefer doing your banking in person and your credit union only has one or a few branches far from where you live, it can make in-person banking more difficult.