Advice on using a credit union instead of a bank?

[elizm]

Anyone here willing to give advice on using a credit union instead of a bank?

[peace frog]

1. I've been a credit union member for 20+ years

and find it much the same as using a regular bank. In fact, the loan programs offer more attractive rates than some banks, and the interest-bearing accounts are as good or better than what I could find at a bank. The credit union handled initial mortgages when I bought my current and previous homes. My checking and savings accounts are free. No complaints, and they are about as solvent today as when I joined, even in these hard times.

[hobbit709]

2. Local credit union is always better than big bank.

We switched years ago. No monthly fees, new checks cost half as much, overdraft fee is $4 instead of $30. The ATM card can be used at any member of the Credit union association and can even conduct regular banking business at any member office instead of just at ours-don't know if that is available everywhere but it is here.

[Hugin]

3. I don't know of any differences in services.

Except over time Banks have insisted on more anti-competitive regulations being placed on Credit Unions which have turned out to be to the Credit Unions' advantage.

They offer most of the same services. You are a member and typically elect the Management of the Credit Union. (If it's a good one.)

Be careful though, there are a few CUINOs out there... Someone can probably post a link to a listing of the ratings of the Credit Unions in your area.

[skooooo]

13. Fewer or no fees..that's the difference!

CUs are better hands down.

[Uben]

4. I can only relate to mine

Mine does not do home loans, so they aren't exposed to that debt. Mine keeps a reserve fund that is a lot more than required, but that winds up making them pay smaller interest on savings accounts. In turn, they are very solid, financially. I have been a member for 45 years, and have been using them as a bank for the last twenty years. You can get "share loans" against your savings for a couple of percentage points lower than going rates, ie if car loans are going for 7%, you can get a loan using savings as collateral for around 5%.
I'm sure there are CUs that practice risky loan deals, but mine does not. I was never worried about their solvency.

[TreasonousBastard]

5. No real difference for retail accounts, except...

credit unions can be cheaper to use and pay better interest. But that's not always true-- there are some great banks out there and some crappy CUs.

Safety is about the same-- credit unions are known to go bust, too, but are also insured.

If I were going to move what money I have, I would look for the things that I care about, not whether or not it's a bank-- availability of ATMs and online banking, services like foreign exchange, how they deal with business accounts, convenience of branches and personal bankers, safe deposit boxes...

[Dawgs]

8. I would disagree that in these times that credit unions are going bust.

My wife is an advocate for credit unions in Georgia and she told me that she knows of not one credit union going bust. There have been numerous banks that have gone bust in the past few months.

I apologize if you work for a bank, but thems the facts.

[TreasonousBastard]

9. Well, here's 10 from last year...

and no, I do not work for a bank. I agree that credit unions are fine for many, if not most, people, but I tend to discount the almost religious fervor some people some have when advocating them.

http://www.cuinfosecurity.com/articles.php?art_id=977

Economy Claims 10th Failed Credit Union of 2008
NCUA Steps in to Liquidate Assets of Small NJ Institution
Linda McGlasson, Managing Editor
September 23, 2008


Last week, amid all the flurry of news about the nation's stock market and investment banks, a small federal credit union in East Orange, N.J., was closed by the National Credit Union Administration (NCUA). Its closure brings the total to 10 credit unions closed this year - up from two in 2007. The FDIC lists 12 banks as failed thus far in 2008.

Interfaith Federal Credit Union was placed into liquidation by the NCUA on September 16. While it may not have the same earth-moving effect on the economy as, say, the Merrill Lynch buyout by Bank of America, the credit union did have 370 members and assets of about $338,000.

NCUA says it made the decision to liquidate Interfaith Federal Credit Union and discontinue its operation after determining the credit union to be insolvent, with no prospects of restoring viable operations. The institution, chartered in 1982 to serve members of the New Hope Baptist Church, was the 10th federally-insured credit union closure to happen this year, according to the NCUA.

Here's a list of the other nine credit unions that have been closed or placed into conservatorship by the NCUA in 2008. Some were taken over by other credit unions, others were closed and had their assets liquidated.

<...>

[Dawgs]

6. Credit unions are not set up for profit, they are set up for service.

They are owned by the members, not a private corporation.

[soothsayer]

7. Try the Pentagon Federal Credit Union. They're huge and really stable.

[old mark]

10. Only advice is - do it now!! We have been members of a local CU

for over 15 years, never had reason to regret it.
We still have one checking account at a bank, and I'm still not sure why, just that some of our online bill aying transactions were set up there and we just never changed them.

I recommened credit unions to anyone.

mark

[FarLeftRage]

11. Works for me.

I've been a member for 11 years now after my ex-bank started charging fees just for breathing!!

[Pale Blue Dot]

12. First, don't just ASSUME that a credit union is safer than a bank.

In general, credit unions may be a safer bet. However, last year just as many credit unions failed as banks. Here is a good website that will give you ratings on individual credit unions (and banks). I would check there first before you give anyone your money:

http://www.bankrate.com/rates/safe-sound/bank-ratings-search.aspx

[elizm]

14. Thanks for all of the input...

I'm really just so darn fed up with all of the banks and their greed that I just wanted to start considering it. I may just start out with a CU saving account and see how it goes...and maybe eventually move everything over. Thanks everybody.

[mackerel]

15. Nice thing about the credit union I use is that it's only

local people that sit on the board.

[Warpy]

16. You'll likely get a better deal and better service than from a big bank

but remember that credit unions haven't been immune from financial disaster.

Just look before you leap.