How do our fees at Credit Union 1 stack up against traditional banks?
Credit unions are non-profit where banks are for profit. For this reason, the fees at Credit Union 1 will be lower and more reasonable than the large banks where people typically do business. With that said, credit unions sometimes have higher interest rates than traditional banks.
The interviewer would like to know that you have done some research on Credit Union 1 and understand how their offering stacks up against traditional banks.
"Because Credit Union 1 is member-owned, I see that you have the upper hand when it comes to CD rates, loans, and mortgages, credit unions often have the upper hand with lower fees. Right now, the advantage appears to be around .05% on many Credit Union 1 products."
"I understand that credit unions like Credit Union 1 tend to have lower fees due to your non-profit and member-owned status. Credit unions do not have as many investors to please, which allows places like Credit Union 1 to often offer lower fees on mortgages and loans."
Community answers are written by other candidates practicing this set. Reading how others frame the same question is one of the fastest ways to sharpen your own.
Anonymous Answer
They have a member-owned status and offer members lower fees on loans. They are more member-focused and nonprofitable.
Cindy's Feedback
Good, I've proved an example below to present your point clearly and to show you how to add specifics that make the example more powerful.
"Because Credit Union 1 is a not-for-profit and is member-owned, it does not make a profit on fees and can keep them low for members. Credit 1 offers fees in the amount of XYZ, whereas national banks offer fees of ABC."
