credit union VS big bank (payment, taxes, accounts, income)

[Dennis P]

Originally Posted by earlyretirement

Personally although I do think having at least one account with a credit union is smart and having a good relationship with a credit union is very wise, I also enjoy banking relationships with the bigger national banks.

Aren't you thankful to be living in a country where you have choices to put your money?

Originally Posted by earlyretirement

I think people make too big of a deal or exaggerate how bad these "big banks" are. Most of them, you can avoid monthly surcharges with a minimal account balance or setting up direct deposit or other things.

I don't think many people nowadays have a minimum of $1,500 to have on hand at all times, most often in a non-interest-bearing checking account. I know I don't. You just pointed out that banking with banks most often has strings attached, such as the direct deposit requirements and having a minimum balance. Both of my credit unions have no such requirements for their totally FREE checking accounts.

Originally Posted by earlyretirement

There are a lot of benefits of the major banks including having a really wide network of ATM's not only in your same city but when you travel or happen to be in another city. Sure there are a few credit unions that might rebate a few per month but I've always found it convenient to be in any city in the USA for the most part and being able to walk into a branch.

Sounds to me you have absolutely NO knowledge of the Co-Op Network. One of my credit union accounts allows me access to 80,000 surcharge-free ATMs. Can Bank of America or Wells Fargo say that?

Allow me to enlighten you on the Co-Op Network: Home » CO-OP Network

Originally Posted by earlyretirement

Also, there are some services that I utilize like having a public notary free at my bank, etc. I don't really use branches too much at all since it's all online these days. But something else nice since I have rental properties is being able to have them available for tenants to easily pay no matter where they happen to be.

I think the major banks take a lot of flack but they aren't as bad as people make them out to be.

You must work for a big bank.

[mathjak107]

good or bad ,credit unions operate as not for profit corporations and add little of what they do make to the income tax base .


that gives them an unfair advantage over banks if you are compaing..

it is better for us individually as we get less fees and more interest but it sucks they add nothing to the income tax base unlike banks.

[fibonacci]

IMO, there is absolutely no advantage at all in using a big bank. Americans love to complain about corruption of our politics due to large outside interests pumping our dirty politicians with money. One of the largest most corrupt industries destroying this country is the banking industry (basically been the case all throughout history). If Americans want to do something about it then they should join their local CU!

It's no wonder why the banking industry has been trying to kill off CUs for years with millions in lobbying money. This day in age with the internet and combined access at other CUs for atms, convenience is almost no longer an issue for joining a CU. I can't believe people still belong to fee ridden major banks.

[mathjak107]

99% of my assets and dealings are through my fideliy CMA account. every bill i pay goes through them too.

i do keep an account at a local bank for when needed but i have no fees at all attached.

[bUU]

Originally Posted by earlyretirement

I think the major banks take a lot of flack but they aren't as bad as people make them out to be.

I'm always sensitive to people blowing things out of proportion like that, but in this case, I think you're mistaken. While they're not evil people, the reality is that the big banks do work hard to capitalize (literally: "turn into money") their brand-name recognition. As I mentioned above, I recently closed our accounts at the worst of the worst (operating in our area), Bank of America. To avoid monthly fees required a $50k balance on account, earning 0.01% interest. We were going to switch to one of the other big banks in our area, TD Bank - they require only a $20k balance on account earning 0.01% interest. I don't consider even that to be "minimal".

None of the big banks in our area (including Citizens and Sovereign) offer better ATM withdrawal access as compared to any of the alternatives we researched: ING, Ally Bank, a local co-op bank, and what we ended up going with, Fidelity Investments. All four would reimburse any and all costs of using a vast array of banks all over the country, in excess of the number of ATMs that any of the big banks would allow us to use fee-free (though the local co-op bank had an unacceptable limit on the number of withdrawals each month). Some of the big banks, evidently pressured by these new alternatives, have begun offering a comparable reimbursement service. It boggles my mind that there were still some big banks not offering such service. They truly are basing their business model on the principle that many people would rather just let things lie than research what could be better than the status quo.

The reality is that there are advantages to choosing banks based on how well they serve your particular needs, rather than based on some vague impression about what their larger size can do for you.

[mathjak107]

my wife gives me that same talk too all the time about size.

[NJBest]

This whole mindset of one is better than the other is pretty foolish. Both have their benefits.

[earlyretirement]

Originally Posted by NJBest

This whole mindset of one is better than the other is pretty foolish. Both have their benefits.

Exactly! That was my point. Credit unions no doubt are great at some things and I agree that if you can, definitely have an account with one. But it's totally foolish as NJBest mentioned to totally discount the bigger banks as "evil". And funny that someone accused me of working for one simply from my post. That kind of says it all on the mindset of some of these people.

Both sides have advantages/benefits.

[davebarnes]

There are 2 kinds of credit unions:
1. In the 21st century
2. In the mid-20th

My credit union (DCU.org):
1. is part the co-op ATM network
2. has great electronic banking with great bill paying
3. allows me to deposit checks with my iPhone
4. has a zillion loan products (although sometimes the rates are not the lowest)

After 25 years of having both a bank account (with a branch 100 meters from my house) and a credit union account, I consolidated everything to the credit union.

[westcoastforme]

I only use Chase for direct deposit and bill paying. All my savings, a substantial amount is in my local credit union. Bank of America can crash and burn!