Credit Union

[bokelley]

What is a credit union? How do the differ from a commercial bank? We just relocated and need to set up a new bank account. Thanks

[diggitydot]

We're with a credit union. Biggest differences I've noticed are that they are far more helpful than the big banks when you have a question or issue, don't tend to "nickel and dime" you for everything, and are very proactive in helping their members achieve or maintain fiscal health.

I think there are also some fairly significant differences in their federal regulations and standard operating procedures.

There are some differences, I'm sure you could find an explanation with a google search.

I've been very happy with the credit union we joined. ITA about the customer service. Also, they tend to have better rates on savings accounts and for loans.

[oceanchild]

If all you need is a checking account, think about what you expect from it. Free checking was important to us - that's something credit unions tend to offer. We also wanted lots of ATMs that we could use without fees - credit unions aren't as good on that front. And we wanted to be able to pay bills online, which is becoming pretty standard.

We have always had a credit union membership, in which we've had a money market account and some CDs. After our latest move (away from our previous bank), we decided to try the credit union for our checking account too.

The credit union we joined is in a credit union co-op, so we can use all co-op ATMs without fees (up to 10x/month). That's not as good as our last bank (which paid us back ALL ATM fees), but it gives us a lot more ATM options, including while traveling.

We have had a customer service issue right from the start with this credit union, but I'm giving them the benefit of the doubt for now.

Julia, if it doesn't work out for you, I was always very satisfied with 1stBank.

[SuzySunshine]

I have no idea what the technical difference is but I too have always been happier with the rates and customer service I've gotten at Credit Unions.

[DCJenn]

I think the difference is that when you belong to a credit union you are a "member" in that you have shares in the credit union. The $ you have w/ them dictates how much of a share you have in that credit union.

I believe they were started to circumvent institutional 'isms'. That's why there are typically limits as to who can belong to each credit union. For example, I used to belong to the Montgomery County Teachers Federal Credit Union. They eventually expanded their membership to those of us who worked for specific social services agencies.

We have one of our mortgages with a credit union here in SA and it's been utterly painless dealing with them.

Jenn

[ides]

It's pretty much been covered. But basically credit unions work for their members and the profits go back into the business in the form of better loan rates, etc. while commerical banks use their profits as profits. As mentioned before membership is pretty specific. We found one that we are joining with the hope we can get a decent rate on a loan for fellowship application/interview expenses that allows dr's in our region to join. Most of the ones in nyc are for state employees or union employees. Some are sponsered by institutions like universities, hospitals etc.