joining credit union? is it a benefit?

[Semidevil]

so I just got recently employed with farmers insurance and in light of filling out forms and doing all the administrative things, one option is to join the federal credit union. Now, exactly what is the difference between a credit union and a regular bank? are there any advantages? should I go sign up?

 

[PirateYAR]

Well I bank with a credit union and they offer better interest on their various accounts versus a standard bank. Other the other hand, they are a little more...strict if you will on their fees and what not. All things conisidered, I'd say Credit Unions are the way to go.

 

[kranky]

Credit unions are not-for-profit and owned by the members. They have low overhead and can often give you loans at a better rate than banks, or pay more interest on savings. There's really no difference between banks and CUs - both have insured deposits, offer checking and savings accounts, credit cards, etc. You probably won't be able to get all the services that a Bank of America offers, but for basic checking/savings/direct deposit etc. a CU is great.

My main CU is a local operation so I like having my money working in the community. And while I'll never have enough money to make a giant bank care about me as a customer, CUs seem to appreciate their members.

I say join.

 

[rudder]

Originally posted by: PirateYAR
Well I bank with a credit union and they offer better interest on their various accounts versus a standard bank. Other the other hand, they are a little more...strict if you will on their fees and what not. All things conisidered, I'd say Credit Unions are the way to go.

That depends on the credit union. My credit union is very lax on fees. Actually instead of being charged any fees, I get dividends. Now if I had a huge wad of cash, I would bank at an FDIC insured place. I think the insurance at credit unions vary slightly.

 

[sswingle]

Im at a credit union. Not sure how it benefits me at this point though, haven't needed any loans yet.

 

[BurnItDwn]

Credit union was great for me with my home financing as well as before when I financed my car. Good rates, easy to do paperwork. Thumbs up.

 

[brtspears2]

I find the nicest benefit of a CU or any smaller community bank is that they know you by your name, not a number.

 

[habib89]

i've been with my CU for years, and because i have been, they offer me special rates on loans.. of course that's not your case.. i think they're great.. no fees for anything.. i dislike all the fees and crap they give you at the big banks like wells fargo or bofa

 

[dullard]

Basically (as said above) since they don't have profits going to bank owners, there is more money available for interest to savers or lower interest to borrowers. Financially, you may be better off with a CU.

However, there may be drawbacks. With a nationwide bank, I can go in person at any time for any reason in any city of the US. If you have a small CU - tough luck. Same goes with 24/7 people operating phone lines, a good website, tons of ATMs, etc. I can get checks written from the same nationwide bank deposited in my account instantly instead of waiting 1-11 days (this has come in handy many times for me).

Of course there is nothing stopping you from being a customer of both. Then you get the best of both worlds.