9 Tips Before You Switch To A Credit Union

[Dover]

The more than 7,000 credit unions across the country are seeing an explosion in new members since Bank of America announced its monthly $5 debit fee in September.

In Miami, Karen Jackson transferred her money from a Chase account to the Miami-Dade Credit Union. She said the continuous adding on of fees had disgusted her.

"We couldn't take it anymore," she said. Recent numbers show there are thousands like her.

Cont'd (9 tips)
http://abcnews.go.com/Business/ConsumerFinance/helpful-tips-switching-banks-credit-unions/story?id=14804344

....


Mad at bank fees? Credit unions get another look(AP)
NEW YORK — Credit unions are basking in the spotlight again.

Whenever a big bank rolls out a controversial fee, customers start fuming about taking their business elsewhere and the attention often falls on credit unions. That happened again last week when Bank of America said it would soon start charging customers a $5 monthly fee to make debit card purchases.

This time around, it seems some customers have finally had it.

The Credit Union National Association and National Association of Federal Credit Unions say other members are reporting an uptick in inquiries and account openings as well. And their respective websites that help users locate credit unions, www.ASmarterChoice.org and www.CULookup.com , both saw a surge in traffic in the days following Bank of America's announcement.

The news may have been the final straw for some because paying to use a debit card was unheard of until this year. The announcement also capped a year of banks pulling back on perks and hiking fees. By contrast, credit unions are known for offering more favorable fees and rates as member-owned nonprofits.

Still, the potential inconvenience and a fear of change have a tendency to keep even disgruntled bank customers from making good on their threats to leave. That's despite the numerous online banks, small community banks and credit unions eager to welcome new customers.

For those curious about what exactly a credit union can and can't offer, here's the rundown:

http://www.cbsnews.com/stories/2011/10/07/ap/business/main20117341.shtml?tag=mncol;lst;7



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Easy Bank Switching - many online companies have created a business out of making bank switching fast and easy. But make sure you know something about them.

[Donnachaidh]

1. kick and Rec! n/t

[defendandprotect]

2. Good thing to have someplace else to go -- !!!

[Shagbark Hickory]

3. I would be very wary of the SwitchAgent service by Deluxe.

This is the same company that prints checks and companies that print checks customarily compile data about everyone who ever orders checks.

Offering this service sounds like a great way to keep their records up to date during this period of transition.

Just go to the flippin bank.

[Dover]

6. Okay, I'm going to remove that one from the OP. However...

the ABC nightly news broadcast story on the movement to credit unions (first article) did include information about some of these
online companies. Bank switching in minutes might be much easier for some people (due to any number of hardships that would make a trip in person difficult), so I think they ought to know about the option. Unfortunately I can't recall the name of the one mentioned in the broadcast.

[Shagbark Hickory]

8. I saw that report.

Just remember there is a reason they're offering the service and if its like the reason most large corporations do things, then it's not because they're trying to do a good deed.

[Dover]

10. Not sure which large corporation you're talking about.

The newscast just mentioned that people switching banks had the option of using an online company to do the switch.
One reporter went through the process and it took 9 minutes. I don't think the company they used for that report
is a big corporation.

[Shagbark Hickory]

12. I seem to remember it being 12 minutes just going into the bank branch.

I don't recall them going into much detail about the online service.

The company I was referring to was Deluxe from your pre-edited OP. I don't know if that was the company in the ABC news report or not but regardless of who it is, I wouldn't trust any company with your bank account information anymore, future, past or present. This includes check printers, Intuit, and ACH drafts and debits.

[frazzled]

4. I have one question about credit unions

or even small community banks: Can they do international wire transfers into your account? (I sometimes have foreign clients, and this is the way they generally send payment.)

[frazzled]

5. Just answered by own question

It seems some of the bigger ones (which don't exist where I am) do, but there is a fee.

[salin]

11. Assume so

More than a decade ago I had accounts in two credit unions - one in the midwest where I had lived, and one in the west where I was in grad school. Was able to wire money between the two.

[Lugnut]

14. My credit union does international transfers.

I don't use that service but my daughter does. Her account is with the same credit union I use.

[ProfessorGAC]

17. Some Do

That's usually something that larger community chartered CU's do. They probably won't do it for free, unless they are large enough to offer business accounts.

I was on the BoD of a community chartered CU for about 20 years. The CU was well over $100MM in assets when i stepped down. They have sinced been absorbed into an even larger CU. We were big enough to do business accounts and i know they did transfers into Canada and Mexico. I don't know about other countries.

Just like any other business, they have to be big enough to offer some services.
GAC

[tblue]

7. You don't need to go to your bank to close your acct.

Just go to your new local bank/credit union and ask them to do what's called a "sight draft" to close your account in your original bank and deposit the funds in your new bank. All you have to do is sign the draft paper and open the new account. Make sure you bring i.d. and your old account info.

Easy as pie! You never again have to set foot in any bank you don't like. I used to be a teller. Banks do this all the time.

[Dover]

9. Does this closure include everything such as direct/automatic withdrawal

for bill paying? Or does that have to be switched separately?

[dtexdem]

13. Nine tips! But that would be like 135%!

Or 180% by you who are less-chintzy.

;-)

[a kennedy]

15. Kicking this

:kick:

[Bombero1956]

16. when I joined the fire department I also joined the credit union

that was 33 years ago. My wife always maintained a regular bank account during that time and over the years her bank has merged twice. Now it's part of TD Bank and she's disgusted with all the fees.