I'd like your opinion on which you prefer and why. Bank or credit union?
Asked by
YoH (
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)
February 27th, 2010
I’ve been dissatisfied for quite a while with my bank of 30 years. Recently I overdrafted,something I haven’t done in 30 years. I have no problem with the service fee for an overdraft,as I made the mistake. I have a problem with how they handled it. The mistake was made on my account,which has my exhusband’s name on even though he’s never used it. The bank took the charges from his credit card. The bank officer said I must have verbally agreed, at some point, to have my overdraft protection covered by his credit card. My name is not on his credit card. I pointed out to her that was ridiculous as he does not use a credit card,has never used a credit card, and had not activated it. Her response was that it was okay as they activated it to get their overdraft fee. I asked why they didn’t contact me or take it from my savings acct? Her answer was that I must have verbally authorized it to be taken from my ex’s credit card. My ex was with me and he let her know how outrageous he found their action.I also talked with her superior to no satisfaction.Satisfaction would have been them admitting they made a mistake. Now I am fed up and looking at other options. Anyone care to share which they prefer, bank or credit union?
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26 Answers
The only advantage of a bank for me is free ATMs are everywhere.
Otherwise, my credit union is superior.
Higher rates when they pay me interest.
Lower rates when I pay interest on loans.
They work really fast. They aren’t tiny ($500M in assets) but they seem like a small company (in a good way).
They were even earllier with web/phone banking, and still are better. Transfers to my credit card account, for example, are instant.
One time my card was denied at car rental agency at 1am. I was stuck in some airport. I phoned the automated system, paid $500 from checking to Visa, and the transaction sailed through!
I’m not as concerned with the atm option, but instant transfers are attractive.
Credit Unions are much more friendly and are willing to take that extra step to help you achieve your financial goals. credit unions are run by its members, where banks are run by CEOs with only their fiancial gain at heart, not the customers.
I use USAA, and if you can, I would recommend them. I also have a local credit union, and have no complaints.
Credit unions are not for profit. Thus, they have lesser fees and they have higher interest rates.
Yoh. i have been a credit union member for years. i have also been a member of many banks and i truly believe the credit union outshines banks 10 to 1. banks seem to be cold and credit unions are alive with real people that truly care. after all, its thier credit union and not somebody in a northern or western states that could not give a care about you. Consumer Reports magazine highly suggests using credit unions over banks for the same reasons and i totally agree.
I’ve banked with several different credit unions and I highly recommend them. For one, the lack of credit check to open accounts has helped me immensely, not to mention they are way lighter-handed on the fees. My last one was great, I had a lot of features with online banking, they offered a 5% interest checking account program that also waived ATM fees. Another very nice thing is that they get to know you personally and generally are a lot friendlier and offer better customer service.
I currently have accounts with Bank of America because I have had them since I lived in VA two moves ago and it was the easiest thing for now.. but using it, I am again reminded of how much I hate them and their ridiculous fees for everything.
We do most of our banking with E*Trade, but for some uses, such as auto loans, we use our local credit union.
Credit union for any reason you can think of.
@skfinkel Glad you mentioned USAA, I am going to check that out. I never use them for “banking,” just insurance, and actually one time a car loan.
Using a credit union would handle all my concerns. My choice of which credit union is made easy,with one, perhaps two locally. Small town few options. I sincerely appreciate all the input.
@skfinkel USAA savings is getting less than what I am getting at my other two banks currently, not that I am getting much interest to begin with. Still, I am going to check the site periodically.
I’m happy with my credit union—higher interest rates on savings, good rate on a car loan, nice people—but I do maintain a regular bank account too, might discontinue it at some point. Just see what credit unions you have in your area, and what do they offer – checking, savings, ATM, on-line banking—what ever you are looking for. They aren’t FDIC insured but operate under another type of insurance in the event that they go under, it’s worth asking them about that too before you jump in.
Those of you who are stating you get higher interest rates at your creidt unions, what rates are you getting right now on savings? Any above 1%?
My local credit union offers free rewards checking with five percent on balances up to ten thousand. This is far greater than what my current bank offers on savings. My information is from an online check only.
@YoH You get 5% interest? With what Credit Union? That sounds impossible. Are you saying over 10K you get less interest? Can anyone join?
@JLeslie – Not impossible.. I had the same thing at my last credit union, the rewards checking. If you had one direct deposit, 12 card transactions, and you logged into online banking once a month, you earned 5% on your checking account. I just looked at their website and noticed they’ve now lowered it to 4.1%, but hey, that’s better than nothing.
@MissAnthrope 4.1% is amazing also, but all of that work you just mentioned sounds annoying. Is 12 card transactions, credit card? I’ll look at the site. Thanks.
@MissAnthrope I see 12 debit card transactions, I don’t use debit cards, and it is just upto the first $25K you have in the account. Still, it is a great deal for some people.
Check Interra Credit Union. It may be only an Indiana credit union.
@JLeslie – It says debit, but they counted any card transaction. It wasn’t a lot of work.. it was all stuff I did anyway. So yeah, I mean, why not get interest on my checking account?
Hmmm, that would be about $1,000 a year, or $750, because you can get 1% at other banks. It’s good. I’m not going to do it, but it is good, I think you made a good decision.
The feedback has been great and I appreciate it. I intend to check out the local credit union and make a change soon. Where I won’t be using it for investments, it doesn’t hurt to have the best interest on my maintenance monies.
Everything counts and everything adds up.
Excellent thread y’all; I just learned so much! I love you, Fluther. And I think I need to switch to a credit union.
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