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I've yet to see a credit union with a quality website. I'm sure one exists, but forever reason they seem to invest little in their websites.
The reason for this is most likely that their demographic is older, at least from my experience most younger kids don't even know what a credit union is!
And why do think that the younger generations don't know what a credit union is or the advantages of belonging to one?
No reason to really be wary of those kinds of rates. These accounts are usually tied in to a certain amount of debit card transactions. My credit union is paying around 2.5% interest on checking up to $25000, but you need to use your debit cards at least 14 times during the month
Sure, if there are strings attached that rate can work. But as an unrestricted rate it does not work right now.
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Originally Posted by sean98125
The credit union is probably making around 2% on transaction fees for each debit card purchase.
No they don't make that much. Your average brick and mortar merchant usually pays a bit less than 2% in transactions fees. The bigger merchants of course pay even less. The credit union also does not get all the transaction fees.
And why do think that the younger generations don't know what a credit union is or the advantages of belonging to one?
Because they see Chase, BofA, Wamu banks on every other corner and think that lots of banks mean they are good banks. They see commercials on TV for these very same banks where "every customer is treated like gold".
They are basically brainwashed to think these big banks are good....50 bazillion ATM's all over the world is good.
This is firsthand from my 19 year old son. He had a kids account at BofA - free everything and it was close that he could go there himself on the way home from school and learn to do banking. He turned 18 and ka-pow..he no longer has a kid's account and we start seeing fees out the wazoo (he doesn't have alot of money now..just a p/t job). So last summer when he got out of school I took him to the credit union to open an account and the first paragraph is what I heard from him.
So there ya have it..kids do not know about credit unions because they are blasted with the sights and sounds and false promises of these big banks through sheer number of branches and advertising.
My son is a bit wiser these days He got upset when BofA starting nickel and diming him on the little money he had there.
So there ya have it..kids do not know about credit unions because they are blasted with the sights and sounds and false promises of these big banks through sheer number of branches and advertising.
Its more complicated than that, the credit unions make little effort in attracting young kids and don't seem to care much about brand loyalties. Where as large banks know a critical point is a kids first bank, they are likely to stick with their first bank.
Its not just marketing either, credit unions don't provide the sort of service that is going to attract younger people either.
Its more complicated than that, the credit unions make little effort in attracting young kids and don't seem to care much about brand loyalties. Where as large banks know a critical point is a kids first bank, they are likely to stick with their first bank.
Its not just marketing either, credit unions don't provide the sort of service that is going to attract younger people either.
Why should they?
You keep pointing to large banks reaching out to younger people and offering a lot more online features, and that's true to an extent. The problem is that the people who use online banking heavily tend to be younger, poorer, and much more willing to move their accounts to gain even a quarter point of interest.
By catering to the older population with brick and mortar locations, they get a stable customer base with tens or hundreds of thousands of dollars to deposit rather than the couple hundred a teenager might have.
The problem is that the people who use online banking heavily tend to be younger, poorer, and much more willing to move their accounts to gain even a quarter point of interest.
They are poorer and more willing move accounts? Based on what?
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Originally Posted by sterlinggirl
By catering to the older population with brick and mortar locations, they get a stable customer base with tens or hundreds of thousands of dollars to deposit rather than the couple hundred a teenager might have.
Sure, but from a marketing/business point of view this is short-sighted. Large banks are trying to attract teenagers because they know their first banking experience will develop into brand loyalty.
If anything, I think the current generation of teenagers has more brand loyalty than previous ones.
They are poorer and more willing move accounts? Based on what?
Statistics, demographics, and psychology.
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Sure, but from a marketing/business point of view this is short-sighted. Large banks are trying to attract teenagers because they know their first banking experience will develop into brand loyalty.
Which will be destroyed as the banks continue to impose more fees, cut CC limits, etc. In case you hadn't noticed, large banks are being run to meet quarterly numbers rather than planning for their long term survival.
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He got upset when BofA starting nickel and diming him on the little money he had there.
