Differences between online banking vs credit unions

[sandia911]

Hi everyone,

This is a general inquiry to learn more about online banking vs. credit unions (in BC, Canada). If you don't have regional expertise any general information will be helpful.

I basically need help deciding which route to go? Opening an online checking account or going with a local credit union in my area. My biggest deciding factor is fees, and availability of the most bank machines to withdrawal money (with zero fees) as well as direct debit purchasing in retail (again no fees).

If i go with online banking, i am considering PC financial, Tangerine (the Candaian version of ING direct)

I like the idea of online banking because there is less overhead and with PCfinancial points going toward groceries (as it's a discount grocery store). However there is a lot about credit unions i don't know perhaps that's the better route. What are the pros/cons between credit unions and zero-fee online banking given the criteria above.

[feh]

Why is it either/or? I belong to a local CU and have online bank accounts.

Can't help w/ aspects specific to Canadian banking...

[snafu]

Sandia, welcome to SA. Tangerine is not really ING Direct. Scotia [Bank of Nova Scotia] bought the Canadian version of ING but is and will continue to recast it in Scotia's way of doing business. Scotia has been seen as the most bureaucratic of the 5 big banks but it has a relatively new CEO {Porter} who can change that. He is the highest paid @ $ 10.6 million I think I read.

Big issues are all the charges and fees, how 'customer friendly,' for the services you regularly use, convenience of ATM machines and up-to-date technology like mobile banking. Do you regularly shop at SuperStores [Loblaws] or have [free linked] CIBC outlet/ATM convenient to home or work? If you plan to apply for a mortgage, a Credit Union {CU} is likely a better option because you will be eligible for their version of a dividend. If you have a high credit score, you can negotiate a better interest rate on a car loan for example.

While it's a hassle to change electronic deposits, if your 1st choice doesn't work out, you can transfer your finances to another institution. Let us know what you decide.

[sandia911]

hey i think CU are not for me since i dont need to borrow money or mortage, or loan (i dont need any money from them) just a zero fee general banking pc financial sound good for me because i shop at no frills, extra foods, and superstore in vancouver however i heard either PCF or Tangerine are dropping their use of the ATM exchange network is that true?

[UDRogue]

A credit union are not for profit financial cooperatives and are among the most stable institution. Credit union boards are comprised of volunteers who reflect the diversity of the membership.

This is the thing. The credit union I belong to, the online experience (it's a brick building but you can access everything online) has no advertisements, no bells and whistles, it is straightforward, no marketing pressure. What you see is what you get. If you compare loans for instance, the rate may be higher, but there are no treacherous gotchas. No bait and switch, no misleading hooks.

The paper statements are utilitarian and straightforward and do not come with offers to transfer balances and other junk I don't want. I don't get junk mail from them, when I call for something I never am asked to listen to "special offers for you today".

With the credit union, you are joining a community for the mutual benefit of everyone. With a regular bank, you are there as a tool to make THEM money. That's the difference. I can't speak to the new "online" type banks though as I have no experience with them.

[snafu]

Sandia, PCF is ok as long as you understand it has limited services, the second smallest of the second tier financial group and owned by Loblaws [Galen Weston] shareholders. I'd track Loblaw {TSX- L] . We've only one Superstore [B level] nearby and it's too awful to bother with]. We only go to a Brick & Mortar bank when we need to get USA currency and hardly ever use cash so no fee accounts work best. [We're heavily marketed for Mobile banking but I've just used it a couple of times].

[YolandoAmaya]

If you see from outside both online banking and credit union seems same, because They both offer checking and savings accounts, financial products. ATMs, debit and credit cards, loans and mortgages are all on the menu at most banks and credit unions.