Private bank or credit union?

[Radiance]

Since I discovered the wanders of credit union banking services I would never go back to private banking.
Which one do you have, credit union or regular private banks?

I believe for credit banks:

1. Offer better rates overall
2. Offer much better customer service!!!
3. Have the most expensive number of branches since they share branches natiowide
4. Have the most extensive number of no-fee ATM since they belong to a co-op network

I see no reason to bank with a regular bank.
Unfortunatelly they are not very well known as a brand name like Bank of america, Chase or ING because they are non profit and can rarely afford to advertise on TV, magazines or billboards.

What do you think?

[MonkeyMama]

Agreed.

I have only banked with CUs and online banks.

The biggest myth out there is that CUs have higher ATM fees. You don't know how many people have told me, "But with "popular private bank" I can find an ATM anywhere." Meanwhile they have to find "popular private bank" wherever they are. I have driven around these people looking for their bank when out of town, etc. There are FAR more co-oped CUs to get free ATM withdrawls from. So this is the biggest misconception that I have seen. Which tries your patience when people are touting something that you see as less convenient than a CU. I have always lived or worked down the street from a Co-op CU. ATM withdrawals couldn't be more convenient, for me. Though I rarely use ATM anyway because my CU branch is down the street from my home (I usually just get my cash there). But the convenient ATM/co-op thing has been my experience with 3 different CUs.

All that being said, when we moved here I switched CUs. I looked into the many in the area, and some of them had some pretty high fees and low rates. Not ALL CUs are good. But the one I ended up with has more branches in the area than most banks, etc. It has more to offer than just low fees and high interest rates. Customer service is superb. Locations are convenient, etc., etc.

ETA: I didn't specify that any withdrawal from any co-op CU is free. (I should have said both "convenient" and "free.") I have never belonged to a CU that didn't have free co-op ATM service.

[creditcardfree]

Hmmm...I'm not sure how my bank would be classified. We have USAA, which is for military members and their families, so not everyone is eligible. But it isn't a credit union. It is a Fortune 500 Financial Services company.

Primarily we bank online. We have zero branches in the state I live. They reimburse us for ATM fees up to $15 per month.

I think it is important to shop around regardless of which type of bank you pick since one bank doesn't fit all.

[devid fox]

I also believe in private banking's,not only for their better rates of interest and a very good customer service but also for their free ATM banking services available nearly everywhere and also their amount of branches spread out in the country.They are extremely reliable and they all have a clear cut deal with their customers.I personally highly recommend it.

[Radiance]

I also believe in private banking's,not only for their better rates of interest and a very good customer service but also for their free ATM banking services available nearly everywhere and also their amount of branches spread out in the country.They are extremely reliable and they all have a clear cut deal with their customers.I personally highly recommend it.

Devid, did you mean credit unions? Private banks are actually the opposite than what you describe. Al least after my years of experience with both types.

[wincrasher]

The cheapest ATM there is is your grocery store. I always get extra cash using my debit card at the checkout.

[atomicrc11]

I am a member of a credit union and rarely use the account. They are only part of one ATM network so I can only use select ATMs, some won't even accept the card. They don't re-imburse ATM fees unless you keep a $1500 minimum balance in your checking account earning 0% interest. Thier savings account only pays 0.50% and thier money market pays the same unless you put in $50k.

This is an example of a poor credit union. This is really the only one I'm eligible for as it is associated with where I work. I do deposit checks and cash fairly often so it is also a pain to use it since there are only two branches. I don't even know if you can call one of them a branch as it only accepts deposits. They rarely have cash on hand, let alone quarters should I want to make a withdrawal.

It all really depends on what fits your situation. I travel a good amount and deposit checks and cash weekly, so having a large commercial bank fits me. I use Bank of America, frequently use their ATMs for deposits and withdrawals, and use their branches for quarters to do laundry.

I also have an affinity savings account, so that makes things a bit better as the rate is pretty good. I guess the point is to just look over your options and pick what works for you. In my case the big corporate bank just works better than the small credit union.

[Radiance]

I see, so there are indeed bad credit unions.
Maybe I am too much of a fan but I think between a good bank and a good credit union, I chose the latter.

I'd encourage you to look around, credit unions are expanding their elegibility conditions and many only ask you are resident of the same county. At least here in Florida credit unions are starting to accept applications as long as you are a near by resident.

Funny thing, my credit union is in California, because I got it, just like you, through employment and the company had this credit union from many years prior when it had a presence in California.

Now, I have a California Credit union, but live in Florida. No issues, plenty of free ATM's all over the country, plenty of branches nationwide opened from Mon-Sat. The only thing is that phone customer services do excel but they are Mon-Fri 8-6 California time!

So far that has not been an issue for me.
But you are correct, it might not work for everybody, sorry the one you have is so bad! Maybe a letter to your Human Resources department

[imsospiraleyes]

Using a large national bank should be a last resort, for when there are no good credit unions or local banks available. The advantages that national banks have are canceled out by the "too big to fail" status they gain. They also use our deposits to lobby congress against finance reform. I'd rather not contribute to the corruption of our political system just so I can have a minor convenience.

I had a few Bank of America accounts for several years, but I recently closed those and joined a local credit union.

moveyourmoney.info

articles.moneycentral.msn.com/Banking/BetterBanking/DitchYourBankForACreditUnion.aspx

[cheerio]

A lot of you are really and truly sick of your banks.

You're sick of getting socked with fees, or tripped by hidden penalties, or earning lousy interest rates. You're tired of being treated like a nuisance rather than a customer. And yet you have little hope that the bank down the street is any better.

But who says you have to settle for a bank? Relief could be as close as the nearest credit union.

Because so many people are fuzzy about the differences between banks and credit unions, I'll highlight the three most important distinctions:

•Credit unions are member-owned. If you have an account at a credit union, you're a part owner in the enterprise. That may not entitle you to use the executive washroom -- your CU probably doesn't even have an executive washroom -- but you're likely to be seen as a person rather than as a "cost center."

•Credit unions are not-for-profit. This status helps explain why interest rates tend to be significantly better, and fees fewer and smaller, at credit unions than at banks. Any profits credit unions do make are distributed as dividends to their members. Contrast that with banks, which continually invent new fees and policies to boost profits (and to pay those stunning executive salaries).

•Banks hate -- hate -- credit unions. President Franklin D. Roosevelt signed the Federal Credit Union Act into law in 1934 to "promote thrift and thwart usury," and banks have been gunning for them pretty much ever since.

Because of their not-for-profit, cooperative structures, credit unions are exempted from most state and federal taxes. Banks have convinced themselves this is an unfair advantage and have spent a lot of effort, plus a fortune in lobbying fees, trying to legislate credit unions out of existence, or at least limit who can join. (I guess they thought the money was better spent there than on, say, improving their interest rates, reducing their fees or slashing their telephone hold times.)

Are you eligible? Almost certainly
Fortunately for you, banks have failed pretty miserably in their efforts to contain the competition. That's why the Credit Union National Association, the CUs' trade group, can brag that virtually everyone in the U.S. can belong to a credit union, thanks to where they live, where they work or the associations to which they belong.

The nation's credit unions count 90 million members, and their trade association estimates members save $8 billion a year thanks to better interest rates and reduced fees. Credit-union-issued credit cards, for example, tend not to have annual fees or to charge punitive interest rates for a single late payment. Most credit unions offer free checking accounts, and penalties for overdrawing those accounts tend to be lower: a $20 or $25 fee is typical, compared with up to $39 a pop charged by banks.

[mommyof4]

Originally Posted by wincrasher

The cheapest ATM there is is your grocery store. I always get extra cash using my debit card at the checkout.

Yep, me too.

[GrimJack]

Originally Posted by wincrasher

The cheapest ATM there is is your grocery store. I always get extra cash using my debit card at the checkout.

Yeah! I can't understand the people standing in line to use the cash machine just 20 feet from the grocery lines. Maybe they don't use the money to buy stuff in safeway.

[JoshuaHeckathorn]

I travel overseas in China and other parts of North Asia a lot. So, for me, I do have several reasons to bank with a large international bank.

I'm also a member of a BECU in WA, which is a great credit union, but I'll never find a BECU branch in Beijing. HSBC, on the other hand, can take care of me wherever I go.

By the way, BofA is the absolute worst. Just writing their name raises my blood pressure.

[amarowsky]

I use Genisys credit union (it has changed it's name about 10 times), but they have always been tremendously kind and very helpful with loans or cards or whatever. They have an excellent online setup, with very user friendly layout. And what's great is they have been constantly expanding into larger credit union networks, which is convenient.

Only thing is they're rates are as high for savings, I usually use ING online for a pretty decent rate for my EF or other longer term liquid savings.

[karenkc]

One thing to know is that some credit unions are actually owned by large banks. So it's a good thing to find out when choosing your credit union.

[jeffmem]

I would like to know if anyone here is living overseas and has been successful in getting a CU account? I once had one long ago, but when I quit the job that allowed me to have the account the CU told me I had to close the account. But with interest rates so low right now I am looking for a new CU that I could use for checking and savings.

[Joan.of.the.Arch]

jeffmem, there are credit unions whose only requirement for membership is that you live in their geographical area. I assume you maintain a permanent address somewhere in the US, even if it is with a parent or sibling. You might be able to get into a credit union there. My credit union will allow members to remain members even if they move out of the area--having once lived here and been a member is sufficient.

[wincrasher]

While I absolutely loath Bank of America, I do find that when I use checks written on that account, I get no flack from vendors or individuals. Especially when I'm traveling out of state. To them it's a local bank.

It might be more problematic using a check from joe blow's credit union.

But hey, why not have multiple checking accounts? You just have to keep money in them. Then the rest is easy!

[mrvirgo]

The smartest thing I ever did with my money was move it to Alliant Credit Union. Anyone can join via PTA membership of donating to an orphans' fund on their website. They have one day ACH in and out, excellent customer service on the phone and pay a competitive rate on their savings and checking accounts. They are part of a web of credit union ATM machines that are surcharge free (i.e. at 7-ll Stores) most of which also take deposits (checks only, no cash). You can't do much better than Alliant.

[cyclone1]

Credit unions seem to be easier to work with than banks