Credit Union vs. Bank (mortgage, refinancing, transfer)
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Hello all, I'm considering changing to a credit union from PNC Bank. I've loved PNC in the past but just had a really nasty experience where the person basically didn't care if I stayed a customer or not. So if they don't want me, why stay?
But, I've never been in a credit union before. I get the concept of them and am eligible for one with good ratings nearby, but does anyone have any experiences here in NJ with them? Warning signs, drawbacks from banks, etc.? I checked in the Personal Finance forum and didn't find much. It looks like there is a potential for more fees than with banks.
Hello all, I'm considering changing to a credit union from PNC Bank. I've loved PNC in the past but just had a really nasty experience where the person basically didn't care if I stayed a customer or not. So if they don't want me, why stay?
But, I've never been in a credit union before. I get the concept of them and am eligible for one with good ratings nearby, but does anyone have any experiences here in NJ with them? Warning signs, drawbacks from banks, etc.? I checked in the Personal Finance forum and didn't find much. It looks like there is a potential for more fees than with banks.
Any advice/experiences is appreciated. Thanks!
I hardly ever step inside a brick and mortar bank, most is done online. I belong to Navy Federal Credit Union, they are awesome. No brick and mortar here in NJ but I do have one in Jacksonville NC by my place.
Fees???? With this credit union I have NONE. Check out ones you are eligible for, compare and go for it.
Years ago, credit unions could be counted-on to pay higher interest rates for savings and checking accounts, and to charge lower interest rates for mortgages, but that advantage has definitely been eroded in recent times.
A friend of mine opened a credit union savings account a few years ago, in anticipation of refinancing his mortgage. However, he subsequently found much lower mortgage interest rates through mortgage companies. He was going to retain his savings account at that credit union until I pointed out that cyber-banks--like my favorite, Synchrony--pay significantly higher interest rates than his credit union.
Shortly thereafter, he followed my advice and moved his savings account to Synchrony, and he is receiving MUCH higher monthly interest payments than he got from his credit union. And, even though Synchrony is a huge cyber-bank, they do have one conventional walk-in office, which is conveniently located in Bridgewater, across the road from Bridgewater Commons.
Last edited by Retriever; 06-30-2018 at 07:04 AM..
Unlike banks, which require large balances to avoid service charges, checking accounts are usually free at credit unions.
This ,my youngest was at Wells Fargo and has a checking and a savings account and they locked her savings account for too many transfers , she had moved and changed apts so she had more going out than usal that month and bam....they screwed her.She is now a member of Navy Federal CU. Loves it.
The savings account limit is a Federal Reserve rule. You can't have more than 6 withdrawals from a savings account per month. That isn't something you can blame Wells Fargo for.
This ,my youngest was at Wells Fargo and has a checking and a savings account and they locked her savings account for too many transfers , she had moved and changed apts so she had more going out than usal that month and bam....they screwed her.She is now a member of Navy Federal CU. Loves it.
I am never one to defend the banks (I worked for one for a long time) but, the problem your daughter had with Wells Fargo is due to a Federal Reserve Board regulation known as "Reg D." It limits the number of transfers per month allowed on a savings account.
I believe that Reg D applies to credit unions also, so your daughter should be aware of Reg D to avoid future problems.
I've banked with credit unions for years. You have to watch some fees with them also. The first credit union I belonged to started charging for more than 6 "pin based transactions" with a debit card. Also I'm sure you've seen the signs on ATM's about fees. The first CU I belonged to would started to charge fees if I used other CU ATM's, the funniest thing was if I used the ATM at my current credit union I would be charged a fee, but if I use my debit card from the newer credit union at the old one, no fee wtf????
At my current credit union I get interest on both checking and savings, albeit not much but no minimum balances. I can deposit checks by taking a picture of them with my phone. I have an app that locates ATM's that I am not charged fees at also. I'd never go to a commercial bank again.
While there are some banks online that pay higher interests rates, I had an account at HSBC, which has a limited number of branches. They kept making the log in procedure more and more difficult, first it was just a password, then a password and "significant phrase" or something like that. The last straw was anytime I wanted to go online, I had to do the password, significant whatever, then get a code from my cell phone. To much bs in the name of "security". I guess they let the geeks run rampant on that one.
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