• TalkBass has been independent since 1998. Add your voice.
    Create a free account to reply to discussions, view embedded media, and browse with fewer display ads.
    Join free Log in
    Want zero display ads or expanded classifieds tools? Compare plans.

Bank vs. Credit Union

B

BassRookie

Mar 31, 2009
38
0
Middletown, NJ
#1
I've been looking into joining a local credit union. I've read a little about them online but I would like to hear from others about them.

What are some of the advantages of one over the other?

Things to watch out for (avoid)?

Is it better to use both instead of just choosing one?

I have no experience with credit unions, so I'm just trying to learn what they're all about.

Any info is appreciated. Thanks.

Joe
 
#2
I can't really offer any well-reasoned feedback...to be honest, I don't even know the difference between a credit union and a bank! But I've been a member of a credit union for the past 30 years (I basically was given an account by my parents when I graduated from college) and I can tell you that this particular credit union has treated me better than any bank I've ever had an account at. Their customer service is an order of magnitude better than any bank's. Whether that's because they're a credit union or for some other reason I couldn't say.
 
#5
In my experience, theres are pros and cons to both. I've been with my bank much longer than the credit union I recently joined, but the credit union is able to offer me much better rates on car loans, CDs, mortgages or any other type of loan or investment. The tradeoff is that my bank has far more branches and ATMs than my credit union could ever hope to. Service wise I've been happy with both.
 
#6
Banks are in the business of trying to screw over customers as much as they can get away with. Credit unions are not. I have had issues with every single bank I've ever used. Been with a credit union for the past several years and I haven't a single complaint. Sure, they don't have as many branches as a major bank but they have enough for me that it isn't a problem.
 
#7
Credit Unions have better rates( I had 7% apy savings for 1 year and 5% after that) and better customer service. banks suck you dry, and charge you out the *** in fees. Bank of America's customer service is abysmal. Wells Fargo on the other hand makes money magically disappear, but the custom service is pretty good IME. My advice stick with a credit union.
 
#8
Credit Unions are sort of like the non-profit organizations of the banking world. They do not exist to make a profit, so your lending rates will almost always be much lower than that of a traditional bank. On the flipside, their savings rates are almost always much lower than that of a traditional bank. CU's are great for taking out a loan for a car or a mortgage for a house. I use a CU and plan on staying with them for the foreseeable future.

http://en.wikipedia.org/wiki/Credit_union#Not-for-profit_status_and_the_need_for_a_surplus



Also, the credit union is small enough to where if I need to call customer service, I get an actual human being very quickly, and from somebody in the United States - not outsourced to a call center in India.
 
#9
If you own a business, I wouldn't use a credit union. The ones I've worked with put holds on large deposits. Also, they usually don't have the online banking technology that the banks do. they have it, it just can't do all the things the banks can do. But beyound these 2 things, the customer service at unions is way better because you're not dealing with a big corporation.
 
#11
I have both...

Bank is my main acct, for everyday gas, groceries ect...

CU is savings and pays rent. I also have my Credit card through them and had my old Car payment.

The only reason I have a bank, is there are more branch's for when i need to grab cash out of the atm.

The Credit union also pays me back a % of their profits at the end of the year, bank i make .000000001% interest.
 
#13
Just make sure that your deposits are insured by the National Credit Union Administration which is to credit unions what the Federal Deposit Insurance Corporation is to banks. In the 90's, Rhode Island had a bunch of credit unions go under that were only insured by a private company. It didn't have the financial capacity to make good on the insurance when the CU's went belly up. The state eventually made depositors whole but it took awhile.
 
#14
lunarpollen said:
Banks are in the business of trying to screw over customers as much as they can get away with. Credit unions are not. I have had issues with every single bank I've ever used. Been with a credit union for the past several years and I haven't a single complaint. Sure, they don't have as many branches as a major bank but they have enough for me that it isn't a problem.
Click to expand...

I really really really don't trust banks. Credit Unions a little less so,...but banks? Eff em.
 
#16
What an excellent thread!!! I say this because of this: I have worked for TCF bank for 10 years and have banked with them just as long...I felt like a number no courtsey or respect and if I did have problems with my account they managed to suck more money out of me with insufficent fees. I finally said sctew this and joined a credit union so far I am happy with it.The one thing that kinda gets me is when I walk in there and tell them I want to withdrawl some money but I am not sure what my balance is the teller will let me know without me giving her any form of ID that is my only gripe. Go with a CU for sure it is much more personal!!!!
 
#17
Thanks for all the help everyone.

I've always used the same local bank which is now Sovereign. I just started a new job and wanted to check out the CU thing before I set up my direct deposit. I really like the idea of improved customer service and better rates on loans.

The one I'm looking at seems to offer a lot of the same things my bank does and their map shows plenty of no fee ATMs (Wawa, QuickCheck, 7-11).

I guess my next step is to go in and speak with a rep.

Thanks again for all the great info
 
#18
Credit Unions are great. They have better rates and lower fees.
As one person pointed out, they may have fewer of their own ATMs but,
where I live, I can still find free ATMs.

With my old bank, I was paying fees every month. It was only like
5 to 10 dollars but, considering that they are holding my money, I
couldn't see the reason.

With my CU, I actually earn money on my checking account every month --
it's not much but earning 25 cents per month is better than paying $5 per month.
 

Latest posts

Top Bottom
Back