Is it worth joining a credit union?

[LuckyTaxi]

Traditionally I have accounts with banks that have a bigger presence. One where I can deposit/withdraw money with ease. By paying bills online and what not I dont see the need to visit banks anymore. SO my question is, is it worth opening up an account just to have one? Some of my friends have accounts so they could take advantage of mortgages and auto loan rates.

 

[SandEagle]

unions are destroying this country

 

[IronWing]

If you're already getting free checking at your bank then switching probably isn't worth it. Credit unions usually beat B&M banks on interest rates for savings and CD rates but they come no where near the rates offered by online banks.


Edit: and a for SandEagle.

 

[KB]

I am very happy with my credit union and would recommend them. Typically they have low or no-fees on some services big banks charge for. I.e They have never added surcharges for the use of bank teller services. I have free overdraft protection, so writing a bounced check isn't a problem because the money will be taken from savings and no fee charged. ATM fees tend to be lower or free. Many credit unions have agreements between them so that no ATM surcharges are applied if a member from an outside credit union uses the ATM. There are more benefits but I can't remember them all.

 

[lokiju]

Just to have one?

I have a account with a state credit union and have no complaints.

There's nothing that I can tell that's different between then and a "big bank" other than fewer locations, which for me is a non issue since they have locations where I want/need and any Publix ATM (very common grocery store around here) is 100% free to use.

 

[Electric Amish]

Originally posted by: KB
I am very happy with my credit union and would recommend them. Typically they have low or no-fees on some services big banks charge for. I.e They have never added surcharges for the use of bank teller services. I have free overdraft protection, so writing a bounced check isn't a problem because the money will be taken from savings and no fee charged. ATM fees tend to be lower or free. Many credit unions have agreements between them so that no ATM surcharges are applied if a member from an outside credit union uses the ATM. There are more benefits but I can't remember them all.

Same thing here. I won't go back to a bank. I have accounts at 2 local credit unions.

 

[eLiu]

Originally posted by: ironwing
If you're already getting free checking at your bank then switching probably isn't worth it. Credit unions usually beat B&M banks on interest rates for savings and CD rates but they come no where near the rates offered by online banks.


Edit: and a for SandEagle.

I'm a member at 2 credit unions... my university union (savings 0.5%) & the NC state employee's union (savings 2%).

The latter has always been very competitive or better than online banks. The former sucks for interest but they're local so it's convenient.

Both banks offer online account management, billpay, etc. I'm generally of the opinion that you usually get a better deal with credit unions than at most B&M banks. So unless it's going to be an inconvenience for you, why not?

 

[trmiv]

Originally posted by: eLiu

Originally posted by: ironwing
If you're already getting free checking at your bank then switching probably isn't worth it. Credit unions usually beat B&M banks on interest rates for savings and CD rates but they come no where near the rates offered by online banks.


Edit: and a for SandEagle.

I'm a member at 2 credit unions... my university union (savings 0.5%) & the NC state employee's union (savings 2%).

The latter has always been very competitive or better than online banks. The former sucks for interest but they're local so it's convenient.

Both banks offer online account management, billpay, etc. I'm generally of the opinion that you usually get a better deal with credit unions than at most B&M banks. So unless it's going to be an inconvenience for you, why not?

NCSECU :thumbsup: We had Wachovia before my wife got a job as a teacher and we were able to join NCSECU. I love it! So much better than Wachovia.

 

[BoomerD]

I've had accounts at my union's credit union for years and years.

Originally, I set up the account so I could get my vacation pay transferred monthly instead of semi-annual payouts, and had my union dues set up on auto pay, but I also used the accounts as a nice "money stash" when I wanted to save money where my wife couldn't find it...

Since Chase took over WaMu, we've been using the Credit Union for ALL our banking.

The loan interest rates are usually MUCH less than through a "commercial bank," but often,, the credit requirements are stricter than a bank's. If you have marginal credit, you won't get approved. (IIRC, you can still set up an impound account as collateral for a loan though)

 

[gsellis]

Been a member of what is now the Delta Community Credit Union for 21 years. Zero regrets. Free checking with no balance minimums. Measly .5% interest on checking, but hey, they still pay something. $5 savings acct required. No transaction fees. Free ATM in many places (like Publix's ATMs). Smaller fees.

And... they are friendly.

 

[waffleironhead]

I have been with multiple credit unions over the years.(currently with addison avenue) They were all very different, and some were more like a traditional bank as far as their rates and service. Check around before just joining any one. The best thing about them is the traditionally lower auto rates. I once went into one of those banks that claimed they would beat any loan rate you had. After seeing the rate I was paying they claimed they only beat other banks(HA HA).

 

[lxskllr]

Banks are beholden to shareholders, while credit unions are beholden to the members. Is there anything else that needs to be known?

 

[IronWing]

Originally posted by: eLiu

Originally posted by: ironwing
If you're already getting free checking at your bank then switching probably isn't worth it. Credit unions usually beat B&M banks on interest rates for savings and CD rates but they come no where near the rates offered by online banks.


Edit: and a for SandEagle.

I'm a member at 2 credit unions... my university union (savings 0.5%) & the NC state employee's union (savings 2%).

The latter has always been very competitive or better than online banks. The former sucks for interest but they're local so it's convenient.

Both banks offer online account management, billpay, etc. I'm generally of the opinion that you usually get a better deal with credit unions than at most B&M banks. So unless it's going to be an inconvenience for you, why not?

I used credit unions for years and always had good service. But when the CU I belonged to started loaning for commercial real estate I got nervous and started looking around, originally for another CU but then I looked at online banks and saw the rates were significantly better for savings. It sounds like the CUs in your area are doing better at matching rates. I don't anticipate ever needing a loan besides the mortgage so loan rates don't interest me. So now I have a free checking account with the B&M bank that holds my mortgage (automatic debit was a condition for a lower interest rate on the mortgage) and use an online bank for everything else.

 

[gsellis]

Originally posted by: lxskllr
Banks are beholden to shareholders, while credit unions are beholden to the members. Is there anything else that needs to be known?

This.... I forgot... I also got a big dividend posted to my savings acct at the beginning of the year as a member/owner.

 

[NesuD]

Credit unions are almost always superior to B&M banks for personal accounts. I haven't had a Bank account in 30 years. I have Online banking that I can use from anywhere, ATM/Debit card that I can use pretty much anywhere, Better CD and Loan rates available to me than banks generally offer, Free checking with overdraft protection, and 6 locations in my immediate area that I can walk into if necessary. My CU is definately stricter about who it gives loans to but I like that kind of thinking. It means I won't be paying for losses from deadbeats who default on their loans.

 

[kranky]

I have accounts at 4 credit unions (3 local - a small, a midsized and a large one, and a giant one that's not local) plus my regular bank. I joined to give me options since banks can change. My regular, long-time bank I was very happy with. Good perks on my accounts (HELOC at prime-1%, no fees, no minimum, for example).

But now my bank got bought by another bank, which doesn't offer anywhere near the perks. I'm glad I have credit union options, especially if I need to borrow. Banks are very rigid in how they lend. Credit unions try to find a way to make it work even if you don't meet the "typical" borrower profile.

I don't see any reason not to have more options available to you. I'd join.

 

[eLiu]

Originally posted by: trmiv

Originally posted by: eLiu

Originally posted by: ironwing
If you're already getting free checking at your bank then switching probably isn't worth it. Credit unions usually beat B&M banks on interest rates for savings and CD rates but they come no where near the rates offered by online banks.


Edit: and a for SandEagle.

I'm a member at 2 credit unions... my university union (savings 0.5%) & the NC state employee's union (savings 2%).

The latter has always been very competitive or better than online banks. The former sucks for interest but they're local so it's convenient.

Both banks offer online account management, billpay, etc. I'm generally of the opinion that you usually get a better deal with credit unions than at most B&M banks. So unless it's going to be an inconvenience for you, why not?

NCSECU :thumbsup: We had Wachovia before my wife got a job as a teacher and we were able to join NCSECU. I love it! So much better than Wachovia.

Haha QFT. NCSECU is awesome. When savings rates were high, they used to be pushing like 3.5% or more. I'm not an employee (though I did work for the DOT for a summer), but my mom has been for a long time. I got an acct there when I was in the 3rd grade and I'm not leaving them any time soon.

 

[zerocool84]

If you're a credit union member you can get discounts at many places and services you use like cellphones and such that you wouldn't get if you banked at a regular bank.

 

[Aluvus]

Originally posted by: LuckyTaxi
Traditionally I have accounts with banks that have a bigger presence. One where I can deposit/withdraw money with ease.

FWIW, many credit unions are members of the CUSC, which allow you to more or less treat any branch of any member institutions as if it were a branch of your own credit union.