Bank vs Credit Union

[radiantquest]

I use the regular kind of bank. A couple of people told me that I should look into a credit union. I dont really understand what the difference is.

I think a credit union is supposed to be better, but I dont know why and how.

Please explain.

 

[packrat]

We belong to the Credit Union here. I love it. You're a member, not a customer, so you "belong" to it kinda like a club, rather than just having an account there. I think they have higher interest rates on savings generally, and lower rates on loans.

 

[Shoopy]

Well, credit unions are based on memberships. You can't just join a credit union. You have to have something in common with those members (although it's very easy, sometimes there are credit unions for your city/county). Because it is member based, the decisions of the bank is controlled through votes.

Aside from the ownership structure, credit unions typically offer much better rates than regular banks. One reason, amongst many, is because they are NFPs. As a NFP they are usually exempt from state/federal taxes so they can pass on those savings to its members in the form of better interest rates and less fees. Of course, regular banks do offer a lot more services than a credit union but they have become so competitive these days that you can really get a lot of your banking done with the credit union. At the same time, banks are trying to pick up on some of the offers that credit unions provide its members. You just have to do the research.

I have had an account with my credit union for 11 years now and love it. I'll never go to a regular bank. If you do go that route, make sure to find one that is NCUA insured!

ETA: here's a short article from bankrate.com that gives an overview of when to choose a bank over a credit union:

http://www.bankrate.com/finance/savings ... ank-1.aspx

 

[kenny]

I've been in a credit union for 35 years.
They are owned by the members.

I like the idea that no owners are getting rich off you.

 

[Jennifer W]

I've been a credit union member for a long time. I like their prudent approach to investment and I like that any profits are distributed to members as a dividend based on share holding.

I also like that they don't have a contact centre, or an automatic phone system. When I call, someone answers the phone and they are always helpful and courteous.

Some run current accounts, others are about savings and sometimes loans. I'd hate to go back to regular banks now, their attitudes to customers don't impress me. My CU just started offering current account facilities and I'll be switching next week.

Jen

 

[radiantquest]

I am seriously considering Nasa Federal Credit Union. I am amazed at the rates they have should you want to buy a car or home. I also like the idea that they arent making money off my money. I should be the only one making money of my money. I am the one that worked for it. It shouldnt be a problem becoming a member either.

 

[loriken214]

I've been a member of my Credit Union since 1989. My employment with Exxon allowed me to join this CU. DH and I receive lower rates on auto loans, our Visa card, etc.

I highly recommend joining a Credit Union, when available, since the fees are lower.

Lori

 

[iheartscience]

I have my checking and savings at a big bank because I love their online banking too much to switch. But I have a loan through my credit union (I can be a member because of where I work) and their interest rates are really fantastic.

 

[movie zombie]

i have been a member of a bay area credit union since 1989. i have online banking with them. i like that it is "local" as opposed to corporate banking.

MoZo

 

[Jennifer W]

Some credit unions in the UK have full online banking and telephone banking facilities - I'd find one that offered that, it's just so much easier.

 

[soocool]

I belong to several credit unions. Free checking, free safe deposit box, free online bill payment, no ATM fees.Savings/CD/IRA are higher than commercial banks and the branches are covenient.