Credit Union vs Bank: Pros and Cons for Your Financial Needs

[chefsteph07]

Does anyone know the advantages of going with a credit union vs a regular "bank"? My DH is wanting us to switch our accounts over to a credit union that is linked w/ his work...I have had our acct w our bank for about 15 years so I'm kind of leary about closing out my account until I know the benefits of one vs the other...any help/knowledge would be appreciated...

 

[ljeffries]

Actually - they are basically the same. Your deposits are insured at each, just by different entities. Just make sure that the credit union offers the services that you like, for example, debit cards, online banking, etc.
One of the best things to do would be to do a list of pros and cons at your current bank, then compare with the credit union.

 

[AnnieBee]

DH and I have used a credit union for the last 8 (more for him) years. We tens to get lower feesl, better interest rates for savings and loans, and great service. His is also linked to his work, and so employees tend to get good deals too (ours is for federal workers).

We have got our car loan from them and got a great rate. I'm sure someone else can give more details on what the differences are, but we have really liked ours. I guess I would make sure it is a big enough one though!

 

[chefsteph07]

That's one thing that DH said about the union, was the interest rates. We will be looking to get a new car in the next 12 mo so that is important also. I did check out some things and they have a kids club (my bank does not have) and they also have a Christmas club (my bank does not have) so those are good features. Online banking and the debit card is a MUST so I will check that out too...

 

[cookingwith_tara]

I've also heard that a credit union is owned by it's members. Like they can't be bought or sold. Does that make sense?

Our MTG is with our credit union and we got an awesome rate plus they paid closing costs, with conditions of course, but none the less, we had no out of pockets. And they do have competitive rates on auto loans, boats, etc., plus the features you mentioned kids, Christmas, and ours has a Teen program.

 

[Jennifer31]

We love our credit union. The fees are a lot less, and the interest rates on everything is lower. Ours has a repo lot, and the interest rate on those cars is 3.99%!!

Yes, we do own a part of our credit union, and they sponsor some contests like direct deposit match for a winner every month, college scholarships, etc. They stress the importance of kids saving money, so anytime my daughter goes in and makes a deposit she gets a prize!

 

[janetupnorth]

I've had an account at my credit union for 32 years. I've been very please with the service. Better interest rates, more personalized service...because it is owned by members, we often get savings "bonuses" at the end of the year or contests that happen.I have an account at a second credit union where I live now just for PC items, been there about 9 years total.1st credit union has been through car loans, student loans, etc. throughout the years...Both credit unions only require a $5 min. deposit and have free checking which is great!