Celebrate National Financial Capability Month: Answering Your FAQs About Credit Unions in PA

Did you know that most people never change their banking services? Some people don’t switch because they might think it will be a lot of work to move their billing and direct deposits. They might not know what to look for when comparing with their current bank. Others stay with the same financial institution because dealing with finances and banking can be stressful. April is National Financial Capability Month, which is the perfect time of year for financial institutions to advocate for better financial education that helps people like you approach banking with more confidence and less stress.

It’s our goal to answer all your most common questions about credit unions in PA. When you’ve read through our credit union’s website and feel more confident in credit union knowledge, come speak with us and learn more about what we at Lanco Federal Credit Union can provide you. We want to inspire and motivate you to join a credit union to benefit your financial wellness and future!

What Do I Need to Know Before Going to a Credit Union?

A credit union is a member-owned not-for-profit organization, which means they provide almost all the same services as traditional for-profit banks while having lower loan rates and higher savings rates. However, credit unions serve more specific groups of people.

Credit unions like Lanco FCU offer services to more specific demographics than banks—the people of a certain area, profession, or other factors. We offer membership to the people of Lancaster County, for example. This membership requirement is part of why we can provide more specific and tailored support to our communities.

Who Regulates Credit Unions in PA?

Federal or state-chartered credit unions answer to a few different financial regulatory agencies. The National Credit Union Administration (NCUA) is one major administrative body that oversees federally-chartered credit unions across the country. The Pennsylvania Department of Banking monitors and oversees credit unions specifically chartered in Pennsylvania.

What Questions Are Important to Ask Before Joining a Credit Union?

Before you open any accounts with a credit union, you probably have dozens of questions to ask. There are things you should know about their specific account requirements and any expectations they will have. For example:

• Is there a minimum deposit amount to avoid a monthly fee?
• Is there a waiting period between depositing and using my money?
• Do I need to open a savings account to have a checking account?
• Does the credit union have online banking options?

The answers to these questions will be unique to the institution you interview, and you should consider your priorities before discussing these questions. If you have a financial advisor, they will help you consider your financial situation and develop goals for your banking choices. This discussion will help you decide on what matters most to you and your saving needs.

Why Choose a Credit Union Instead of a Bank?

There are countless reasons to choose to join a credit union over getting a traditional bank account. Still, the simple fact is that credit unions are not-for-profit organizations that prioritize their members, while banks are for-profit businesses that answer to their shareholders above all else.

Credit unions put the people of their community first and are owned by their membership. Yes, credit union members take on partial ownership of the organization when they join the credit union. Because of this organizational structure, credit union members enjoy higher yield savings and investment accounts, pay lower loan rates and fees, and enjoy other benefits.

What Is the Difference Between the FDIC and the NCUA?

You likely won’t notice any differences between financial organizations overseen by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) if you switch from a bank to a federally insured credit union now. These two groups provide extremely similar insurance protections for depositors—$250,000 insurance per depositor account at the organization is the standard for both.

If your institution fails, the NCUA will return your account’s lost funds to you – up to the quarter-million figure above. The most important thing to know is that if you have a trust, retirement, deposit, or joint account with a federal credit union, your savings are already covered by the NCUA.

How Do I Choose a Credit Union?

Choosing a credit union starts with membership eligibility. Credit unions are owned by their members and usually cater to specific communities, workplaces, or organizations. For instance, Lanco Federal Credit Union offers our services to individuals and businesses in the Lancaster County community.

Once you’ve established which credit unions are available to you through your industry, community, or other organizations, your considerations are much like when choosing a bank—what are the services like, how high are the fees, what dividends can you expect.

Can You Get a Credit Card From a Credit Union?

Yes, you can! Not all credit unions offer the same services, but most credit unions will offer credit or debit cards for your personal banking and day-to-day payment convenience. Modern credit unions offer mobile apps which can be helpful in managing multiple cards. Digital wallets and other mobile banking tools are perfect for tracking expenses through mobile phone banking. These can also offer mobile check deposits and other digital banking services.

Can I Use a Credit Union Debit Card at an ATM?

Most credit unions today know how important it is to stay mobile and have your money with you wherever you go. This is why Lanco FCU has a relationship with the CU$ no-surcharge ATM network and offers Kasasa Cash Back® or Kasasa Cash® checking accounts, which refund ATM fees from other banks when you meet qualifications.

Additionally, although we do not participate in the Co-Op Shared ATM network, our members can access their savings accounts and transactions via Co-Op Shared Branch locations nationwide.

Which Credit Union has Friendly Service and Excellent Benefits?

We do! Managing your financial needs shouldn’t be stressful or confusing, and we want to help you understand and relax. Your questions are important because we are a financial institution that only grows when you do.

There are many credit unions in PA, and each would be lucky to have your membership. Make sure to choose the best credit unions for your needs and eligibility. Unlike the big banks, we are here for you, not for profit. So, if you’ve been questioning if your money is working for you, contact us and learn more about our membership eligibility and benefits.