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Each of us needs a safe place to deposit our money, be it in a checking account designed for everyday spending, a savings account that encourages the long-term accumulation of assets, or one of many other investment products on the market. 

Some people think of checking and savings accounts, and even the financial institutions that offer them, as almost interchangeable, but there’s much more variety than might be apparent at first. Banks and credit unions may seem identical and offer similar products and services, but they function quite differently. Credit unions may be a better fit for some as they navigate their financial journey due to their different organizational structure.

Credit unions are structured as not-for-profit financial institutions that are owned by their customers (who are called members). Member owners have a say in how the credit union operates and are part of a community of people working together to prioritize the financial well-being of all members. Credit unions also share profits with members, rather than for a select group of shareholders. This is often done in the form of lower fees, higher rates on deposits, and sometimes, even bonus dividends. 

Despite the common misconception, it’s actually very easy to join a credit union. At Ascend, for instance, there are multiple ways to be eligible for membership, such as having someone in your immediate family who’s a member, living in a financially underserved area (all of Franklin County is one such area), working for an employer that is one of our partners, or even being a member of the Tennessee chapter of The Nature Conservancy. 

One other aspect that sets credit unions apart is their mission, which is to financially empower members and the community at large. Ascend offers a range of services to educate members about financial fundamentals and help them make informed decisions regarding their money, including a free online financial education center with interactive videos on everything from savings basics to planning for retirement.

Another added benefit for credit union members is the variety of high-yield accounts, such as checking accounts, certificates and money markets, that they can take advantage of. Especially in today’s environment of high interest rates, opting for these types of accounts can help earn more compared to traditional accounts. At Ascend, we offer an Interest Earning checking account that earns 3.56% annual percentage yield on balances up to $15,000. Since high-yield accounts aren’t directly impacted by the stock market, they’re considered a safe way to invest with the potential for a high reward. They’re an excellent choice for individuals who are looking to build an easily accessible emergency fund or reach shorter-term financial goals, such as saving for summer vacation or a down payment on a home or car.   

If you’re seeking a place to deposit your money, it’s important to think about what aspects of an account are most important to you. Ascend is federally insured by the NCUA.   

Josiah Leverich is the chief payments officer for Ascend Federal Credit Union.