Business And Finance

Differences between FCU and SCU in Syracuse

Since we live in the USA, we can differentiate two types of credit unions, including federal and state-chartered. Even though they feature similar characteristics, purposes, and requirements, they also come with few differences you should remember.

The main differences include the regulations that both federal and state unions feature. That is something you need to remember before you determine which one is the best for your needs.

You should know that state-chartered credit unions tend to be regulated by the respective state in which they operate. Therefore, it is part of the state’s financial services.

On the other hand, federal credit unions fall under the regulation of the National Credit Union Administration (click here to visit their official website).

Generally, both types of credit unions are financial institutions that can provide you banking services. Still, they are owned and operated by the participants. Another important consideration is that credit unions are non-profit enterprises that feature tax-exempt status.

FCU is the credit union supervised and regulated by NCUA similarly, as we have mentioned above. On the other hand, state credit unions follow state-specific rules and regulations, which means that regulations can vary from state to state.

State Credit Unions

We can differentiate a few benefits of using state charters for credit unions instead of FCU. The FCU tend to have max interest rate regulations, which means that different states will feature no limits or higher limits when it comes to interest charges.

In contrast, state authorities will offer you much higher levels of familiarity in case you use the state credit union. Remember that you will not get the same intimacy while using the NCUA, especially since they require specific regulations followed by federal rules and laws.

However, you also need to remember that not all states will provide you and regulate credit unions. For instance, Wyoming, South Dakota, Delaware, Arkansas, and D.C. do not feature state-specific charters, which means that all unions within their borders are federally chartered.

Some of them feature deposit insurance, which is based on the credit and full faith in the federal government. On the other hand, some states will require a state-chartered credit union to feature national insurance, which means that the NCUA will evaluate their efficiency and risks.

Federal Credit Unions

As you can see, the federal means that they feature the jurisdiction from the federal organizations. However, we are not saying that federal government operates them.

On the contrary, these organizations are regulated by the National Credit Union Share Insurance Fund and the NCUA. Check out this link: to learn more about this particular insurance fund.

Everything started at the beginning of the 70s when Congress established the NCUSIF under the management of the NCUA. That way, they have ensured that each member shares the account based on the federal regulations.

Similarly, as FDIC or Federal Deposit Insurance Corporation for banks, this particular insurance is backed by the credit and full faith of the U.S. government.

Remember that the NCUSIF will protect the account based on the federal insurance up to $250 thousand, which is applied to each shareowner and for each ownership category within the credit union.

Benefits of Credit Unions

1.   Customer First

As soon as you decide to open an account by using a credit union, you will become a regular member. When compared with the banks, remember that associations do not feature stockholders, which means that it works based on the members.

Since it is a non-profit organization and model that reduces the overall focus on generating income and creating profit. You will get much better support experience and customer service so that you can get everything you need.

The credit union features regulations that will not provide you the same set of rules as banks. Therefore, you will be able to use their services even if you have a lower credit score than required.

Credit union representatives will work with you in case you find yourself temporarily out of employment or if you find yourself in a difficult situation.

2.   Lower Fees

Another important consideration is that you will be able to get reduced fees when compared with banks and other financial institutions.

The charges are smaller than the ones you will arrive within the bank. The lower fees work not just for loans, but ATM fees and transfer fees as well.

As soon as you decide to enter here, you will be able to understand the importance of FCU in Syracuse.

The biggest moneymaker for banks is overdraft fees, which are lower as well. That means that you will be able to save more money by joining the union instead of finding other financial institutions.

Whatever you decide, you will get what you need, because in both cases, you should read everything carefully to avoid additional expenses that you do not expect.