Advice Needed - PLEASE help

[RConcheiro]

Hey guys, currently I have Chase Ultimate Rewards Checkings. I plan on getting a car within a year or so, and I currently work at a place that offers a Credit Union.

The Credit Union name is Railroad & Industrial Federal Credit Union.

Would you guys recommend that I change to the Credit Union to become a member, or would you recommend that I save my savings with the credit union, and then get my auto loan with the credit union and then continue to get my points with the Ultimate Rewards.

Any info would be greatly appreciated and would be willing to paypal a small fund for your time and info!

[cjscully]

I'd go with the savings at the credit union and the checking at Chase. I'd do it because it gives you the best of both worlds, not just for the rewards.

Generally credit unions give higher returns on savings and lower rates on loans. What you often have to give up with Credit Unions is some of the convenience of the big banks. For a savings account you generally don't need so much convenience as you won't (or maybe I should say "shouldn't") need to access the funds frequently and can therefore put up with things like fewer ATMs, etc.

The big banks offer lots of convenience and features but usually can't match the rates given by credit unions. Regular or "free" checking accounts don't pay interest anyway so you would want to have a checking account that gives you the features and conveniences you want such as abundant ATMs, rewards programs, etc.

[bjl584]

I'm a bit confused, but I see no reason why you couldn't open up an account at your credit union for an auto loan in addition to the checking account that you already have now.

In the past, I've set up a free checking account at a bank so that I could get a favorable interest rate on an auto loan through them. I only put $1 in the account, and I would deposit 25 cents into it once every six months to keep the account active. When the vehicle was paid off I cashed out the account and closed it.

[RConcheiro]

Originally Posted by cjscully

I'd go with the savings at the credit union and the checking at Chase. I'd do it because it gives you the best of both worlds, not just for the rewards.

Generally credit unions give higher returns on savings and lower rates on loans. What you often have to give up with Credit Unions is some of the convenience of the big banks. For a savings account you generally don't need so much convenience as you won't (or maybe I should say "shouldn't") need to access the funds frequently and can therefore put up with things like fewer ATMs, etc.

The big banks offer lots of convenience and features but usually can't match the rates given by credit unions. Regular or "free" checking accounts don't pay interest anyway so you would want to have a checking account that gives you the features and conveniences you want such as abundant ATMs, rewards programs, etc.

This is exactly what I was looking for. Great advice which ill most likely follow. Thank you so much!

[krantcents]

Keep both! I have a relationship with Bank of America (39 years) and Xerox Credit Union (36 years). I use the credit union for car loans and savings and the checking account to maintain a commercial presence.

[RConcheiro]

Originally Posted by krantcents

Keep both! I have a relationship with Bank of America (39 years) and Xerox Credit Union (36 years). I use the credit union for car loans and savings and the checking account to maintain a commercial presence.

That's what I am going to do. Thank you so much!