Bank or Credit Union? Where Should You Save Your Money?

Saving money is super important, whether you're putting away pocket money for a new game, or helping your family plan for the future. But where should you keep your savings?

Most people think of banks, and yes — they offer interest. But that interest usually comes with conditions, like locking your money away or paying hidden fees. And if you ever need your money in a pinch? You could end up with penalties or barely any gain at all.

Before you open a bank account, read the fine print. Make sure you’re not losing money to fees or making less than you thought.

There’s another option: credit unions. And they might be a better fit for your savings.

Let’s look at the differences between saving with credit unions vs banks —and why saving with a credit union might be the better choice!

What's the difference between a bank and credit union?

The Ownership:

• Banks are big businesses owned by shareholders who invest to make a profit.

• Credit unions are owned by their members — that means you if you join! We're not-for-profit, our focus is on helping members, not investors.

  
  

Fees and Charges:

• Banks may offer interest-bearing accounts that come with conditions or fees that can eat into your savings.

• Credit unions usually have lower or no fees because they only need to cover basic running costs. At CLEVR Money, we aim to keep things simple and affordable for everyone.

  
  

Interest Rates:

• Banks may offer interest on savings — but it often depends on saving large amounts, or locking your money away for a long time. If you withdraw early, you may lose out or face penalties.

• Credit unions work differently; most do not offer interest on savings accounts. Instead, if there's a surplus at the end of the year (after covering running costs), it’s often partly shared among members as a dividend. That means you get a share of the success!

  
  

  At CLEVR Money, we’ve paid dividends to our savers every year.

  
  

Customer Service:

• Banks can feel big and impersonal—ever been stuck talking to a robot on the phone?

• Credit unions are local and friendly. We know our members by name and genuinely care. Many credit union staff are members themselves!

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So Why You Should Save with a Credit Union

It’s An Easy Way To Improve Your Own Finances!

Credit union savings accounts are designed for real life. People save with us for:

• Family budgeting

• Emergency funds

• Holidays or special occasions

• Christmas savings – spreading the cost across the year

• Helping others – your savings help fund fair, affordable loans for people in your community

Your Savings Help Your Community!

When you save with a credit union, your money does more than just sit there—it helps real people in your community! It helps people in your area by funding low-cost loans for things like:

• Fixing the car

• Replacing a broken boiler

• Back-to-school costs

• Supporting families in difficult times

Unlike big banks that send profits to shareholders, credit unions reinvest in people and places you care about.

💡 Fun Fact: Even if you only have a small amount saved, it still gets pooled with others’ money to make a BIG difference. Every pound counts!

Be a Community Hero—Just By Saving!

You don’t need to donate money or volunteer to help others. Simply choosing a credit union means your savings:

✅ Give fair loans to families who need them.

✅ Keep money circulating in your area.

✅  Support a financial system that puts people before profits.

So why let a bank profit off your savings when you could help your community instead? Start saving with a credit union today—it’s good for you AND everyone around you! 🌟

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