What is a common way credit unions reduce fees for their members?

Credit unions typically reduce fees for their members by maintaining lower overhead costs. Unlike traditional banks, which are profit-driven, credit unions operate as not-for-profit financial cooperatives. This means that their primary goal is to serve their members rather than generate profits for shareholders.

By keeping operational costs lower, credit unions can pass those savings on to their members in the form of reduced fees for services such as account maintenance, ATM access, and transactions. This operational efficiency often results in better interest rates on savings accounts and loans as well, creating a more favorable financial environment for members.

The other choices do not align with the primary strategies employed by credit unions to enhance member benefits. Higher interest on loans does not contribute to fee reduction, charging a membership fee could potentially add costs instead of minimizing them, and while partnering with financial advisors could provide value to members, it doesn't directly impact the fees charged by the credit union.