Where to put your Savings? In a Cooperative or a Bank?

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Your personal interests will define what you prefer the most.

To decide if a bank or a cooperative may be the best option for you, you must understand what the differences are between the two, even though they can offer you the same services: savings accounts, credit card and loans.

Private Bank

Like any private sector industry, its main objective is to make a profit by offering products and services, in this case, financial services with account management fees or interest on your loans.

Their financial offer is usually broader, so they have more branches throughout the United States, as well as countless ATMs so you can access your money.

It is possible that they continue to innovate in their security systems, financing, logistics, communication technologies to carry out procedures, loan applications and electronic transfers over the Internet or applications.

They can also offer special services such as credit cards for frequent travelers and try to generate attractive offers, benefits or discounts to please their customers.

Among the most affordable banks are:

  • Sallie Mae
  • Synchrony Bank

Cooperative Bank

According to Legal Beagle, a cooperative bank is a financial institution run by its members, who are owners and customers by holding shares and/or deposits within the cooperative.

As its name says, cooperatives are designed to support the economy of millions of Americans who require loans that could have more affordable charges or savings services with slightly higher interest rates than those offered by private banks.

However, one point against it is that the scope of cooperative banks in the country are usually more regional than national, so you would have to investigate with your institution in which states it works and if you can have access to your money in case do a job inside or outside the country.

Although the cooperatives also manage accounts with debit cards and you can withdraw money at ATMs without extra charges, their coverage is usually less in number than what a private bank offers you.

The institutional operation of a cooperative bank is carried out based on the vote of each member to elect the administrative team that will see to the interests of the members. For important decisions, a general vote can even be reached.

Among the most recognized national cooperatives are:

  • National Cooperative Bank
  • The Cooperative Bank