Avoid Hidden Costs of Traditional Banking & Join a Credit Union

Traditional banks often come with both hidden and not-so-hidden costs that can add up over time. Big banks have been the default choice for many people—not because they’re the best option, but because they’re familiar. What many don’t realize is that credit unions offer a smarter, more affordable way to bank with lower fees, better rates, and personalized service.

Credit unions like OnPath Credit Union put members first, focusing on transparency, lower fees, and better benefits. Even banking customers who want to save money and maximize rewards may be reluctant to change due to the perceived complexity of the process.

Although it might take a bit of effort, switching to a credit union now might save you money moving forward thanks to lower fees and better rates on loans and allow you to generate higher yields in your savings and checking accounts. 

The Profit-Driven Nature of Traditional Banks

Banks are designed to make profits for shareholders. Credit unions are designed to help you save. While big banks rely on fees and high interest rates, credit unions put their earnings back into better benefits for members—like lower loan rates, fewer fees, and higher savings yields.

• Monthly Maintenance Fees: Let’s break it down: A $12 monthly maintenance fee adds up to $144 a year—money that could go toward groceries, gas, or savings instead. At a credit union, you keep that cash in your pocket.
• Overdraft Fees: These can quickly add up for customers who occasionally exceed their available balance.
• ATM Fees: Using an out-of-network ATM can result in steep surcharges.
• High-Interest Rates on Loans: Banks aim to generate profit through higher loan and credit card interest rates.

These details are often buried in the fine print of account contracts. As a result, many banking customers sign up for accounts without being aware of the added costs.

These practices prioritize profits over customer needs, leaving many account holders feeling undervalued.

Think switching is a hassle? It’s easier than you think. In just a few steps, you could move your money to a credit union and start saving hundreds a year. Just because you’ve had the same bank forever doesn’t mean it’s the best choice for your future.

Why Credit Unions Are Different

Credit unions operate as non-profit organizations, meaning their primary mission is to serve their members rather than generate profits. Some key member-first benefits include:

• Member Ownership: Joining a credit union isn’t just about better banking—it’s about supporting your community. Your money stays local, helping fund small businesses, home loans, and financial education for people in your area.
• Lower Fees: Because the goal is providing the most advantageous account features to members, credit unions typically have fewer and lower fees, helping you save money.
• Better Interest Rates: The goal of credit union lending products isn't to increase profits by maximizing interest payments. As a result, members typically enjoy lower loan rates and higher savings yields because profits are reinvested into the credit union.
• Personalized Service: Credit union membership is typically exclusive to people who work for a specific company or organization, or live, worship, or work in a defined geographic area. You can check your eligibility for OnPath membership here.

Transparency and Trust

One of the most significant advantages of credit unions is their commitment to transparency. Without pressure to meet investor demands, credit unions prioritize clear communication about fees, rates, and account terms.

Members vote for the board of directors, who serve voluntarily and are accountable to the membership, not outside investors.

One of the biggest ways credit unions stay transparent is through their Annual Meetings, where members get a direct line to leadership and financial updates. Credit unions invite members to be part of the conversation.

Examples of Member Benefits

• No Monthly Maintenance Fees: Many OnPath checking accounts have no monthly fees, saving members money over time.
• Free Access to ATMs: OnPath offers access to a vast network of fee-free ATMs. Rewards checking accounts also offer up to $10 in refunds for out-of-network ATM fees each billing period. 
• Competitive Loan Rates: Members benefit from lower interest rates on mortgages, auto loans, and personal loans.
• Exclusive Member Perks: From financial education resources to special promotions, OnPath provides tools to help members thrive.

Making the Switch From a Bank to a Credit Union

Switching to a credit union is easier than you might think. Start by researching the account options that best suit your financial goals. At OnPath Credit Union, joining is straightforward and comes with the added benefit of knowing you’re part of a financial institution that truly values you.

Hidden costs don’t have to be a part of your banking experience. Learn more about membership eligibility.