Getting into the farming business is no easy task! Depending on the type of farm you are wanting to buy, there are many expenses that will need to be taken into consideration before diving in. What type of farm are you looking for? A horse farm? Pig farm? Crops? Each and everyone of those options requires specific items to operate, all of that will need to be included in the investment of the farm property if you are getting after this for the first time. I’m writing this because a friend of our sons came to us and asked what it took to set up a farm. I didn’t have an answer for him because it’s such a broad answer that I didn’t even know where to begin. The first thing I asked him is what are you wanting to farm? We talked a bit about his passions and concluded that he wanted to be a horse and cattle rancher, have some chickens, and other livestock but didn’t have a vision for monetizing the farm. We talked further and we gave him some ideas on how to earn a living as a farmer, and then came the big questions that we all ask ourselves at some point. How in the heck do I pay for that? As we discussed lending options, he inquired about the difference between a bank and a credit union, and while I’m no expert, I came up with some notes that might help some other young folks out there searching for an answer to a similar question. So here we go!
Banks have started charging their members an unnecessary amount of fees from too many monthly transfers to not having a direct deposit in your account. Due to these increasing fees, many consumers are turning to the credit unions. When deciding between a bank and a credit union, it’s important to view the pros and cons before making a decision. Both banks and credit unions operate under similar laws and agencies such as loans, mortgages and safety, therefore the customer experience you get can be different. The overall difference is that banks are for profit institutions, while credit unions are nonprofit.
Credit unions tend to have better customer service and lower fees, but higher interest rates. Credit provided average financial benefits equivalent to $85 per member and $178 per household in 12 months ending March of 2018. Banks generally have lower interest rates with higher fees. Both banks and credit unions provide similar services such as checking and savings accounts, loans and business accounts. Since credit unions are non-profits this means that they are owned by the customers. You must qualify for a membership. There are horse farm mortgage lenders that offer competitive rates on small, medium, and large property loans. You are going to want to inquire with your local credit union about the available financing options they have for you.
In fact, a 2017 American Customer Satisfaction Report shows that customers rate credit unions with higher satisfaction than banks, scoring 82 out of 100. Additionally, banks generally have more branches, easier access, and better technological developments. This has become increasingly important for users who often depend on mobile banking services.
Credit unions have the potential to have better percentages and more members who are driven to save their money with a good interest percentage. A big concern when choosing between a bank and a credit union is safety. Credit unions are federally insured and credited by the U.S. government. It is insured that your money will be safe. Research your options and check out quotes from banks, credit unions or online lenders to ensure you get your financial needs met.
Overall, credit unions are owned by the government, meaning they are more reliable and the safer way to save your money. The customer care is more of a family environment and the interest rates are more ideal. Banks have great customer care too and good savings and checking plans for your account. Credit unions and banks have their pros and cons and it all boils down to your financial situation and what bank or credit union prefer. Many people use both as well for credit and or debit cards. Also, some may use a credit union for a business and a bank for personal finances. It all depends on your financial lifestyle.