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Not all credit unions are created equal. We used to belong to one--their fees were outrageous and their policies were assinine. We now have modest accounts with another CU, an ING account for stashing emergency cash, and most of our day-to-day banking as well as some additional cash stashing is done with BofA. If you have a large enough relationship with them, they'll treat you well.
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Is there any big advantage to use a bigger bank?
Not really. I have used kiosks at CU's in cities across the country to access my account and have not actually been in my CU office in many years.
I do use Fidelity Investments for brokerage and sometimes for wires, etc. that could not be done from a kiosk. I am in one of their offices maybe once every four or five years.
Online banking means you can find services without visiting an institution most of the time.
If you ask me, I would rather stick to my local CU and keep reaping the unique benefits as long as possible. The reason I mentioned “unique” is because CUs offer something that banks don’t. Like I got in-school banking for my child from LUSO Federal Credit Union. He has learned some basic money-saving and banking skills at this young age.
credit unions have a big advantage over banks and can offer more interest and money saving perks . credit unions do not pay income tax on profits like banks do . they are classified as not for profit organizations .
personally i think it sucks they get away with no taxes but it is what it is and if you can benefit why not .
The biggest downside to credit union is cross collateralization, if you don't know what it is and have multiple loan/debt products with your credit union you should know. Cross collateralizing debt would be if you have an auto loan and a mortgage and default on one all collateral can be taken to secure the default. Now you might say you are never late on your credit cards, car payment or mortgage but ***** happens and if you are unaware the damages can be much wider than at a bank.
I live in two different homes seasonally. I bank with a large regional bank that has branches convenient to both those homes and branches everywhere in my travel pattern. That's where my direct deposit lands. It's my household checking account and nothing else. My emergency fund is with an internet bank. My credit cards are with other banks that have better deals. If I were consolidated down to one home, I'd use a credit union if that was a better deal than my regional bank. My regional bank is fine. I don't pay fees. It doesn't pay interest but it's not like I park real money in my checking account. A few things like ATM foreign currency fees, a fee for an overdraft line of credit, and a check printing fee have crept in over the last 20 years but nothing that would make me want to give up the convenience of having the same brick & mortar bank at both locations.
I do all my banking at a credit union and they have everything I need there. I have 3 credit cards with Chase and a mortgage with Wells Fargo, but I haven't had any need to open an checking or savings at either one.
I have my Checking, an LOC and 2 Credit Cards w/PNC ... Savings, another LOC and a Personal Loan are with USAA CU ... Investments are with Oppenheimer, Employer's 401K, as well a 2 personal accounts.
I like having a CU account for nothing else is the amazing low rates they dole out on Loans. Plus better interest on Savings over the Big Banks. I also like Big Banks for more better Online/Mobile Banking experiences, as well large ATM networks with various capabilities all functioning the same way. I like that I can move through PNCs ATMs menus pretty quickly and be in and out. I know not a big deal to a lot of people, but I hate futsing around through several layers of menu's just get a quick 100$ out the machine.
Big Banks are just a Utility in my book, for moving money in and out regularly (Paycheck, In ..... Bills, Out).
The biggest downside to credit union is cross collateralization, if you don't know what it is and have multiple loan/debt products with your credit union you should know. Cross collateralizing debt would be if you have an auto loan and a mortgage and default on one all collateral can be taken to secure the default. Now you might say you are never late on your credit cards, car payment or mortgage but ***** happens and if you are unaware the damages can be much wider than at a bank.
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