Honest question about credit unions and smaller banks - how do you choose?

[nadine_mn]

Please note - I am not trying to start any snark fest or flame war or whatever else you call it - sometimes GD can be a dangerous place to post questions


I bank at Wells Fargo and I am getting ready to move accounts. But I have always had the same bank - well to be fair it used to be Norwest bank before it was bought, so I have no clue about smaller banks or credit unions.

I am at a loss as to how to choose which bank gets my unemployment check (HA laugh at that 1%ers).

My husband and I have little income - we are usually just barely getting by so its not like it will make a dent in Wells Fargo but I have been increasingly getting fed up with all the fees - now there is going to be a fee to just have an account - I used to have free checking since I was 16 (same fricking account for over 20 yrs - now getting charged) and OWS has spurred me even more to switch.

Any tips?

Small bank over credit union - pros/cons?

Thanks in advance

[lonestarnot]

1. Credit union. You have a voting voice there.

[demosincebirth]

2. C.U.

[silverweb]

3. Credit union.

You're a "member," not a "customer."

[PETRUS]

4. I favor credit unions.

But I don't think there is anything inherently wrong about a bank. Small local or regional banks are behind a lot of the kind of lending that people really need.

[MindandSoul]

5. I moved from BofA (after 37 years) to a credit union a year ago

and I am very satisfied. I only pay $4.00 a month to pay all my bills through the web (for the bills that don't have automatic transfers, they send an actual check to the company with no extra cost).

To become a member of the credit union, I only had to deposit $25.00 for an account. . . twice that if I wanted 2 accounts. For this, I automatically have a $250 overdraft protection, and the $25.00 will be refunded in full if I decide to close my account.

Very satisfied. . .at least until now!

[UrbScotty]

6. Most smaller credit unions are part of the Co-Op Network of ATMs

...which means you can use any of the Co-Op Network ATMs anywhere in the nation without having to pay any fees.

[LAGC]

10. Is there a master list or map of where all these ATMs are located?

I just switched from Chase to a local credit union after Chase started their monthly fee bullshit unless you keep a minimum $1500 balance.

I'm pretty sure the credit union is part of this "Co-Op Network" that you mention, but I'd just like to be sure and know where other friendly ATMs are when I'm traveling, without getting dinged on foreign ATM fees.

[UrbScotty]

14. Can't find a map, but here's a tool to locate an ATM

http://www.co-opfs.org/public/locators/atmlocator/index.cfm

[LAGC]

19. Thanks!

Very useful. I verified that my Credit Union is part of the network, and now know exactly where to look when traveling.

That network actually provides a lot more options than any of the big banks, since with the latter you have to use one of their own limited branded ATMs to not be dinged a service fee. Much more convenient having all those options with the credit union.

Thanks again!

[nadine_mn]

24. oh thanks that's good info to know nt

[handmade34]

7. here's a start...

http://moveyourmoneyproject.org/find-bankcredit-union

http://moveyourmoneyproject.org/watch-video


"The Move Your Money project is a campaign that aims to empower individuals and institutions to divest from the nation's largest Wall Street banks and move to local financial institutions.

It has been almost three years since the Wall Street banks, through gross corruption and greed, caused the greatest economic crisis since the Great Depression that caused millions to lose their homes, jobs and livelihoods. And while the Wall Street banks have quickly returned to making record-breaking profits and bonuses, helped in large part to the $700 billion bailout by the American taxpayer, little has changed to prevent the types of abuses that created this mess..."

[nadine_mn]

25. thank you for the info!

[Booster]

8. I have the same problem you do. I bank @ Wells Fargo, but

also have half my money in a credit union. I would like to let go of WF, but the problem is my credit union is 10 miles away and they have no ATM machines. I don't want to cut my nose off to spite my face and make it a pain in the ass to get money when I want to. I don't want to be hamstrung by driving 10 miles with set business hours, etc. There are several small Asian banks close, but I really know nothing about them. Is US Bank one of the bad ones; it's close also and they have a branch in the local Ralph's store. Anybody use them? Also, my mortgage is with BofA and I'm definitely going to refi. International Citi Mortgage is offering to refi, but aren't they affiliated with Citigroup which had people arrested. These decisions are a lot harder than I ever thought they would be. Help. I also read that Wells Fargo refused the bailout money but they were forced to take it; the article (sorry I don't have it handy) said Wells Fargo wasn't one of the bad banks. Any info on that? Thanks.

[glinda]

9. Husband & I are at Wells Fargo and in process of moving his money to CU.

The CU refinanced our house also at a savings of about 130/mo. We are also looking into car/house insurance through one of their connections in hopes of getting that down also.

Our CU had a campaign called "Ditch your naughty bank". His IRA, Card, CD and everything is going over to them. Every month there is a Wells Fargo horror story so we are leaving them.

[Selatius]

11. At my credit union, I have free checking, and they allow customers to check balance/pay bills online

I pay all my bills through my credit union now through e-checks, and my debit card is a handy substitute in case I don't have cash on hand for a purchase at the store or restaurant. If I know there isn't enough cash on my debit card to cover the purchase, I can use the internet on my phone and transfer money from my savings account into my checking account in real time, and sometimes, I accidentally use the debit card to pay for something with insufficient funds in the checking account. No problem, the credit union just transfers the difference from my savings account into my checking account to pay for the purchase, but there is a two dollar fee for that, so it's important to keep tabs on your spending and checking account level.

Typically, with most credit unions, they tend to offer higher interest rates on savings accounts and lower interest rates on loans you take out compared to traditional for-profit banks.

[Luminous Animal]

12. Here is a link to check on the health of your local bank or credit union...

You'll have to check out the fees yourself, though.

http://us1.irabankratings.com/MoveYourMoney/IRACommunityZip.asp?affiliate=moveyourmoney&zip=&submit=Search

[cyglet]

13. From another MN person

I use Hiway. They are very good, though most credit unions here are (I don't personally like Affinity, because they act like a bank). The only thing I don't like about Hiway is they outsource certain things (credit card mainly). Hiway serves MNDot and most state employees and you have to live in this area:

There's also Wings (for Northwest/Delta employees, but anyone in the cities can use them now). I haven't used them but my neighbors have used them for years.

I'd be afraid to go for small banks, as they have a tendency to be bought out by the larger banks. These are two credit unions that are solvent and have absorbed insolvent credit unions in the recent past (Hiway acquired Fort Snelling CU and Wings acquired Higrove).

[OffWithTheirHeads]

15. O.K. I'm going to say this one last time!

A few years ago, when I was unemployed, I had reached a point where I could NOT pay my bills. I
couldn't make my car payment, I couldn't make my credit card payment, etc. I called my credit union. I told them that I had pulled every rabbit out of every hast I could find and simply could not pay them. What did they tell me? Take a break for a few months and get back to us when you are on your feet! Can you imagine Banksters of America doing that? I love my credit union!

[burrowowl]

16. Credit Unions are best

but some do not have business accounts, so local bank can be a good answer. Ask them if they charge a fee to people like your sub-contractors want to cash your check there even if they do not have an account, if no go there. Some credit unions do and we went with one that doesn't for business account.

[BeHereNow]

17. No question here- CREDIT UNION!!!

Just do it- small banks are very likely to be consumed by
the bigger ones eventually.
No chance of that EVER happening at a credit union.

Starve the beast!
Keep the money in YOUR community!

My CU will let you open an account with just five dollars-
No judgement, no fees- you'll be so much happier.
And they don't limit the amount of cash you can take out on
a daily basis.
I love my CU!!!

BHN

[FrodosPet]

18. My Credit Union rejected me for a car loan

Wells Fargo gave me the loan.

That shows how stupid they are. They ended up repossessing the car and sold it for $7000 less than the loaned on it. So the credit union was smart enough not to make a bad loan to me, while Wells Fargo's greed cost them $7000.

Yes, it's true - my life sux!

[Lugnut]

20. I like my local credit union.

I opened a savings account with a small local CU about 8 years ago in advance of closing my BofA account due to the fees and cash holds on deposits. The only requirement they had was a minimum balance of $5.00 in savings. With the savings account they included a free checking account. Checks are free but there's a $1.00 per month fee if you want a debit card. I don't usse the automatic bill pay feature so I don't know if there's a fee for that.

Most of the small banks have been gobbled up by the big ones in this area. I unintentionally ended up at BofA because of these acquisitions and it was a horrible experience.

[marybourg]

21. What about the Amalgamated Bank. Bills itself as the only labor

bank. Run by the Amalgamated Clothing Union. Disclosure: my great-uncle, Jacob Banasch, was a founder of the (then) Amalgamated Ladies' Clothing Workers Union. www.amalgamatedbank.com

[sam11111]

22. bank owner - rich- donates to GOP.....CU manager, upper middle class only, no got millions to donate

Exceptions to the party affiliations sure but that is the pattern IMO

[marybourg]

26. the Amalgamated Bank is Union owned.

That's why I mentioned it. Maybe you meant your response for a different poster?

[SoCalDem]

23. We have free checking, free money orders, free online banking

free safety deposit box, free travelers' checks..

My bank is Provident Bank. There are 3 branches near me. The one I frequent is very small.. I can call them on the phone and talk to the branch manager, a teller..they recognize my voice.. (and I, theirs).

They have free coffee in the lobby.

We have banked at Wells Fargo, Wamu, B of A, and this small bank is the BEST of any we have used.

We have direct deposit & I pay all my bills online.

[PRETZEL]

27. We switched from a credit union to a small local bank

wasn't so much that there are major differences between the two so it was mostly a matter of convenience. The bank has locations closer to where we live and had better hours.