Which is better? Banks or Credit Unions?

[DuchessAimee]

I'm looking for another place to store my money until right before the zombie apocalypse. What's better? Banks or Credit Unions?

 

[arwen83]

Wow, grasping at straws for topics on here haha

You can store your money with me, you can ALWAYS trust an elf!

 

[DuchessAimee]

lol, I kinda am, actually! You can see through me Arwen, that's kinda cool.


Also, I need to find a new money holding place. But fees are out of control!


Besides, if I'm not browsing the forums what am I supposed to do, chat? Actually, I used to only chat on this site.

 

[zeroturbulence]

The Credit Union vs. the Bank

Its very important to make sure you credit union you're considering is FDIC insured because a lot of banks and CU's in the US are still failing. They just aren't in the news anymore.

Here is the best site to compare current banks and CU's:
Mortgage Rates Credit Cards Refinance Home CD Rates by Bankrate.com
(credit unions have their own section. at the top far right, click on Find Rates and the last option is credit unions)

 

[wisebeardman]

shoebox under the bed.

 

[iTOREtheSKY]

I'm looking for another place to store my money until right before the zombie apocalypse. What's better? Banks or Credit Unions?

I must say,I've seen the most bizzare threads started in the "Singles Forum". (most started via shae) but anyways,now that I'm here Iguess I'll answer the question. Credit Unions! I have been with the same CU for 10 years now & they have been nothing but awesome to me,helpful,etc...They don't charge me any crazy fees for atm stuff or checking. I can even go in & they will make me photocopies of stuff for 2 cents a page. (on a flesh related note,one of the tellers looks like Eva Mendes & makes me weak in the knees with her smile lol)

 

[Hellooo]

Aimee - they all have their own pros and cons.

Credit unions are great if you value face to face interaction, and a lot of their loan/credit rates are way more competitive. Their savings account interest rates tend to be a little higher for smaller account balances (whereas a lot of bigger banks want to see a relationship of at least 50k to receive a higher rate on savings) Also Credit unions don't fall under Frank-Dodd regulation so they can offer you rewards for using your debit card.

Bigger banks are helpful if you travel frequently (domestic/abroad, you can usually find the bank in other states or their global partners in other countries) and it's SOOO much easier to transfer and deposit your funds electronically.
It's a lot easier to file claims with a bigger bank as well, if you have any issues or need any kind of research done. Credit unions tend to go through more frequent acquisitions and changes, which is something to keep in mind if you're adding beneficiaries, setting up trusts, transfer on deaths, or have tax questions on things you did like 5 years ago. When you walk into a bank branch, the experience is definitely not the same as you would receive when you walk into a credit union, it's a bit more impersonal. Regional banks also offer more competitive rates on deposits and have fantastic customer service, but they also go through more frequent mergers and acquisitions.


Personally, I love my credit union for everyday checking but I go elsewhere to save and invest. The things that are important to me are being able do things electronically without having to drive and speak to a person or deal with paperwork. I don't want my parents going through a big mess, trying to figure out how to settle my accounts if I die, since I have no spouse or children. I'm not impressed by any deposit interest rate offering in anything FDIC or NCUA insured in this environment, so it's not something I look for.

The most important thing is looking at what you're looking to accomplish and finding whatever is most suitable to achieve that objective. I'd argue that between banks and credit unions, one isn't inherently better, it really just boils down to what you need out of a banking relationship. There's also no rule against using both to get all of your needs met.

 

[Hellooo]

With fees -- a lot of times you can avoid them altogether by asking the bank to just change the type of account you have...if youre getting hit with balance requirements and minimum balances and all that mess, and you're comfortable with managing your own accounts online, just ask for your checking to be converted to the most basic no frills account. If you're getting maintenance fees simply for having idle cash then you're probably in the wrong type of account to begin with..your intent isn't to give away money.

 

[AAAPlus]

I'm looking for another place to store my money until right before the zombie apocalypse. What's better? Banks or Credit Unions?

Without a doubt, credit unions are the way to go. I was with the same bank (Chase) for 10 years...always kept a large amount in my savings...and when I went to apply for a credit card with them they promptly rejected me...TWICE. Their reason; I didn't have credit. Well you're my bank, shouldn't you of all places cut me some slack here??

Anyway, I went to a credit union and they immediately approved me for a $1000 limit on a VERY low interest card. After that I switched all my accounts over.

All the major banks will charge you a monthly fee if you don't have enough money in your savings and/or checking accounts. Although I never come close to the minimum amount, I still don't like the fact that they do that. You can also get much lower interest rates on credit cards and car loans with a credit union. They are also way more friendly and personable. They also generally make it very convenient; every credit union I know of is part of the "Co-op" network which means you can use any co-op participating ATM without being charged a fee. Every ATM at any credit union will be in this co-op network as well as any ATM at a 7-11(so basically everywhere). They are also insured by NCU, so your money will be just as safe as in a bank.

On top of that, they are way less money-hungry and won't try to gouge you at every opportunity. My wallet was stolen a few months back and my credit cards were charged up. By law, the issuer can hold you liable for up to $50 on each card, but my credit union refunded me the entire amount with no hassle.

I honestly can't think of any reason for the average person to go with a bank over a credit union. And to piggyback off of one of your previous threads...I can't speak for all credit unions but mine happens to have a VERY convenient and easy-to-use app that lets you transfer money, view your balances, and contact a banker directly.

 

[SeatBelt]

... (on a flesh related note,one of the tellers looks like Eva Mendes & makes me weak in the knees with her smile lol)

Ack, the lysDexia! I first misread that as one of the Fellers, not Tellers....had to re-read that three times.

CU vs. Bank? Just as long as its FDIC I think the answer is Whatever.

I hear Ing has cool online banky stuff, but never checked it out...

round here there's all kinds of offers for free $ if I open a checking account and leave it open and active for 6 months. not sure if it is worth the $50-$100 to mess with though since I don't want to change banks.

 

[Ugly]

I must say,I've seen the most bizzare threads started in the "Singles Forum". (most started via shae) but anyways,now that I'm here Iguess I'll answer the question. Credit Unions! I have been with the same CU for 10 years now & they have been nothing but awesome to me,helpful,etc...They don't charge me any crazy fees for atm stuff or checking. I can even go in & they will make me photocopies of stuff for 2 cents a page. (on a flesh related note,one of the tellers looks like Eva Mendes & makes me weak in the knees with her smile lol)

You almost got a like .. til you said Eva Mendes, then i decided you didn't deserve it after all =P haha

 

[rachelsedge]

I work at a bank and I still don't know which is better.

I'm just a teller, though, I don't know much about the inner workings. I know a bit about the different types of accounts but that's not really my department.

 

[zeroturbulence]

I work at a bank and I still don't know which is better.

I'm just a teller, though, I don't know much about the inner workings. I know a bit about the different types of accounts but that's not really my department.

You're that pretty girl that guys will walk in for instead of using the ATM haha. I know because guys I knew would do this (insist on going in and waiting in line because there is a pretty girl who works there). Don't worry, these guys were in their 20's.

 

[cutepoison]

Banks are owned by one individual or by stockholders, Credit Unions are member owned. What does this mean for you? Credit Unions are for the people, not for the profit. Credit Unions are often less strict about credit requirements, fees, etc. A Credit Union is very much in your best interest.

My dad is a regional manager for a credit union.

Credit Union, credit union, credit union..... I keep saying it lol.

 

[rachelsedge]

You're that pretty girl that guys will walk in for instead of using the ATM haha. I know because guys I knew would do this (insist on going in and waiting in line because there is a pretty girl who works there). Don't worry, these guys were in their 20's.

Well shucks, zeroturbulence, you're too kind! And for the record, there have been a couple guys well out of their 20s hit on me at work. One was kind of...not all there, in the head, and he very loudly declared "Why did no one tell me this pretty young thing was working here??" Thankfully there weren't a lot of people there, but I was so embarassed. Usually I work in the drive through though, where I'm less likely to get hit on and more likely to send out dog treats to people who don't have dogs.

 

[AgeofKnowledge]

The gobblement doesn't bailout credit unions. But they do bailout large insurance companies and banks as long as they are "too big to fail." The little independent ones, of course, are simply left to twist in the wind.

Banks are owned by one individual or by stockholders, Credit Unions are member owned. What does this mean for you? Credit Unions are for the people, not for the profit. Credit Unions are often less strict about credit requirements, fees, etc. A Credit Union is very much in your best interest.

My dad is a regional manager for a credit union.

Credit Union, credit union, credit union..... I keep saying it lol.

 

[Hellooo]

Credit unions are very much for profit. They just get financed from its members, rather but than shareholders, but their revenue model is virtually the same. Banks and credit unions earn the majority of their revenue from the spread between interest they collect and interest they pay out. they also earn from various other services and fees, but the bottom line revolves around the interest spread. Not knocking them at all, credit unions do tend to offer better loan rates for personal and auto loans. And they can offer some incentives that major banks are prohibited from, since they don't fall under dodd frank, which can be good or bad.

 

[zeroturbulence]

The one big disadvantage of credit unions is that they don't have many branches so if you use ATMs a lot its something to think about. The CU might not charge you a fee for using other bank's ATMs but the banks who own the ATMs might.

 

[WilsonJ]

Nice one that you were able to post your query.In connection with that,I could say that financial analysts have generally advised against giving gift cards previously. They are cash-like commodities, but with more restrictions. So why not just give cash instead? However, their popularity is increasing, unaffected by that logic. So, if we will keep giving them, there are some things we ought to know. **Advertising link removed**

 

[zeroturbulence]

SPAM ALERT ^^^^

(note: the post may have been deleted by the time you read this)