Do you belong to a credit union? Why or Why not? (status, interest)
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I belong to a credit union and two years ago I convinced my mother to move her accounts from Bank of America to a credit union because B of A was charging her fees for a ridiculous number of things. For my very modest needs, the credit union has far more benefits for me (and fewer fees and penalties) than I ever got from a big bank. I do most of my banking online or at an ATM but any time I have had to utilize services in person, a credit union employee has given me all the time I needed for questions and advice. I have also received free notary services and classes on financial topics. Their rates on car loans are far better than any big bank in my area. My credit union (and most others, I believe) consider me to be a member. I get invited to their annual meeting and I have the right to vote, speak there, and propose ideas, if I so wish.
What ridiculous fees was bofa charging? What big bank did not give you the time you needed in person to answer your questions? These seem like blanket responses people repeat without detail or use a single experience to extrapolate the norm
I had Credit Union available to me through an employer, but I never used it.
Do they offer better terms on mortgages then a bank ?
Some do, some don't. You probably need to go to a service like A Smarter Choice and see if you can find all your options. If that doesn't help, just do a search on "where is a credit union in my town?" and you should be able to do a comparison. Sometimes the smaller CU's are more responsive, I've found. The one I mentioned earlier is the big dog on the block. It really DOES matter who the members are, since supposedly they own shares in the CU. My Hawaii credit union has good rates, the one here in AZ didn't.
What are all the banking fees people are saying they paid to big banks? I banked with wells and citi and now with chase and I don't run into any fees
I'm not sure if that's directed at me, but I meant CU often have fees, not banks. However, it is very seldom I have to pay fees, maybe $0.10-0.20 a year, my 1.25% interest more then makes up for that. The average person probably won't pay fees at all. I had to get some documents printed for a mortgage, which I went through a local bank and got nearly 2% lower interest from them, but it costs to print anything. No annual fees or anything like that.
No fees and personal service. We just moved our car loan to our CU after getting a 2.99 interest rate. And I can pay online from my checking account.
I also used to bank Wells Fargo - and had their credit card. Too many times nickeled and dimed with fees. I never use the ATM but if I needed to I could use any credit unions machines and never be charged a fee.
Our portfolio is brokered at Wells Fargo but that's it.
We have two primary accounts in my household. I've been with WF for years and am happy with them. I never pay any bank fees other than purchasing checks or if I bounce a check (which I don't do) because I've had an account so long, I've had 2 car loans and a mortgage there. All the tellers at my branch know me personally and take good care of me. So I'm happy with a big branch bank. It lets me bank pretty much anywhere I will every travel, and has great online banking. But I earn practically no interest, and their CD rates are pretty abysmal.
But a few months ago, we wanted to refinance our house, and even though we have a great history with WF, and 800+ credit scores, WF didn't have a refi option that made any financial sense for us. The CU around the corner from my office had one that did. We were happy enough after talking with them that we not only refinanced the mortgage with them, my husband also moved all his banking over to them. Their online banking is decent and they partner with a bunch of different CUs, so a decent number of options if we are traveling.
I have accounts with several credit unions, local and national. Some are better than others. Most are very conservative with their lending practices. Depending on their SOP once you are in with them things loosen up, but in my experience that's not always the case....although I have been pleasantly surprised by one in particular the past few years.
I think this article says it all about why people moved to CU's and it talks about the fee situation - but it sounds like some people aren't finding them any better than banks. So my question is also, if your CU isn't as good as you think CU's should be, have you told them? They are supposed to be member-based, aren't they? Are Credit Unions a Better Banking Option? - US News
The fundamental difference between CU's and banks is that banks are for profit. They exist to provide a service (banking) to make profit. CU's are non-profit organizations that are setup to provide a service for a community (be it a large company, industry, government, etc.).
That said - just because CU's are non-profit doesn't mean they are not looking to make money. They still have to make money to remain solvent.
Like anything else, there is no universal rule that will always apply. Not all CU's will be better than all banks. One does have to compare their requirements to what is available. In certain cases, CU's will serve them the best, and vice versa for others.
To answer the OP - yes, I bank with two CUs. But also have accounts with banks. They each serve different purposes. And one of my CU's does have a minimum balance (or assess a fee).
My CU has a great checking account. They refund 12 ATM fees a month (from any ATM anywhere) and I can deposit checks via mobile app. For basic banking, I would not want to go anywhere else. For more complex financial services, they are not my first stop.
Yes I have belonged to several credit unions. Still belong to one because it has consistently given us lower interest rates on auto and home improvement loans, as well as paid higher interest rates on certificates of deposit, than most of the big banks. And they have provided great customer service.
I also like knowing that my savings deposited there will go to help other families like mine.
I used to have CD's with Bank of America and Wells Fargo (was Wachovia). But they have dropped their interest rates so low they are not competitive and Wells Fargo nickles and dimes you with extra fees.
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