Credit Unions vs. Banks

Credit unions have their perks.

Monopoly. Loved it. Did you love being the banker? The one with the big wad of cash?

Those were the good old days when it was cool to be the bank. Today, it ain’t so cool to be the bank. Why?

* All of the pens at the bank that you use to fill out the deposit slips are out of ink. Seems like the banks could care less.

* The bankers have the worst ties and have spilled a bottle of cologne all over themselves.

* There is only one teller available and all of the others are on a break.

Seriously though. People are leaving banks. Where are they going? Credit unions! Yep. Credit unions are non profit companies and are owned by their members who are also their customers. Most banks are public and their first goal is to serve their shareholders, then their customers.

Why are people leaving banks and joining credit unions?

Fees. Some banks nickel and dime their customers with ATM fees, account fees, and maintenance charges. Many banks no longer offer free checking. They don’t even give out free toasters anymore! Many credit unions offer free checking or charge lower fees than banks.

Credit card rates. Many banks charge higher rates than credit unions do. If you have a credit card balance, see if you can switch to a credit union. Ask if there is a balance transfer charge by the credit union. Find out if this adversely impacts your credit score.

Savings account rates. Credit unions sometimes pay higher rates of interest on checking/savings accounts than banks do.

I am sure there are exceptions to my 3 points above, but this is usually the case.

If you are unhappy with your bank, you may want to move your accounts to a credit union. Here’s the deal. Banks are open to anyone. But credit unions restrict access to just a pool of people or region. To find a credit union in your area and to learn more about how to join, go to http://www.creditunion.coop

If you are an entrepreneur and you have a solid business relationship with your bank, than you may need to stay put. Relationships are key, especially when you need a loan. Keep in mind that credit unions offer business accounts as well. They also are a great resource for business loans. Why? They are membership based.

But if you feel like you are just a number at a bank and they don’t care about you, then try a credit union. Worst case scenario? The pens will work, and the cologne won’t be so bad.