Question: I’ve seen some minor discussion on this subject in a related post, but I wanted to field this exact topic to this group.
As most banks have lately, mine will be merging with another bank at the start of the new year. My bank is in a great location (around the corner from my apartment), so I’m grateful for that. But as with all banks, I’ve never quite grasped how or when they charge their fees for various services. They once told me there was no fee if I had over $400 in my checking account, then they said there were no fees if I have over $600 in my checking account, then they said there’s a fee regardless of how much is in my checking account. My records never seem to match their records, no matter how carefully I calculate everything. My girlfriend wants me to join her credit union, claiming it to be more of a convenience, but I only have experience with banks so am wondering which would be more beneficial in the long run.
What are the pros and cons of joining either a bank or a credit union? Your experience and knowledge will be most appreciated.
Answer: Definitely go to the credit union. I can’t praise mine enough (great Visa rate, great personal loan rates, free bill paying service for your bills, they even mail out their own check and don’t take the money out of your account until THEIR check clears – talk about float! they also have the canceled checks online for you to print out, no minimum balances, free checks, toll free lines for the self service telephone, internet banking, share loans – 2%) and I could go on but you are probably tired of hearing my chatter…..but in fairness have to cite a possible drawback. (and my CU may be the exception www.psecu.com)
If you aren’t near to it, that may cause you to incur some atm charges and inconveniences with making deposits or other business you may need to do. However mine rebates you a few bucks a month in fees for the times I can’t get to the machines that have the Credit Union symbol. Also the CU may not have the other services you need from a traditional bank so you need to make sure it will meet your needs even if it is cheaper.
I’d say no matter what try to put a minimal amount of $$ in the CU just to get your foot in the door. Once you join they can’t get rid of you based on your occupation or affiliation and with the courts changing things, it pays to get in while you can and before they may shut the door on you.
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