The drawbacks of credit unions

[quinnox]

I was lucky enough to know someone who was part of a local credit union and I was able to get in that way, ten years ago, but often credit unions have strict requirements to join them - you can't just walk off the street and put your money down and open an account like you can at the big banks. So if you don't happen to qualify for the credit union you might be out of luck.

The main inconvenience of credit unions is this: lack of widespread atms (and branches). Often you have to only go to certain credit union friendly atms or get hit with fees. These atms are usually limited in locations and it can be inconvenient to hunt one down, for example, many 7-elevens have one that is credit union friendly but it's a cumbersome and long process to sign in to it just to use the damn thing.

The point is big banks have much better atms as well as branches in terms of availability and convenience. I have a credit union account but also a bank of America account so I understand both of the experiences. I will most likely drop my Bank of America account and look for another big bank to try and get the best deal when their new monthly fee kicks in. I'm thinking if I have to I'll open an online only account with Capital One if I can't find a big bank that won't charge fees for a checking account.

[WonderGrunion]

1. That's why the Maine Credit Union League started the SURF alliance

I now have access to over 200 ATMs throughout the state of Maine without withdrawal fees.

http://www.mainecul.org/right.php/pid/3/sid/10

SURF ATMs
Many of Maine's credit unions have come together to form the CU24 SURF ATM Alliance. With a network of more than 200 surcharge-free ATM locations throughout Maine, members of participating credit unions can save an average of $300 a year in fees and not find fees hidden someplace else.

In addition, a number of CU24 SURF ATM Alliance locations give hundreds of thousands of Maine credit union members the ability to not only access cash but to also make deposits, surcharge-free.

[Greybnk48]

22. Wisconsin has this as well. I have not paid an ATM fee

in two years since we switched to our local CU, which is open to anyone. I love being able to go to any CU ATM and not pay a fee, and there are CU's everywhere here in Sconnie.

[Devil_Fish]

2. you may want to ditch BofA sooner the that. Check this out:

http://dailybail.com/home/holy-bailout-federal-reserve-now-backstopping-75-trillion-of.html

[aquart]

3. You do know you can use your ATM card at the Post Office?

For up to $50 at a time. NO FEE. That's more than enough for me because I don't use much cash. Laundromat and fruit stand, that's pretty much it.

I wouldn't be eligible to get into my credit union now. I'm grateful I had the sense to get in when I was.

[quinnox]

6. yes and also

grocery stores to get cash back. That is one workaround.

[aquart]

7. Yup. I do that, too.

[Selatius]

4. My credit union allows me to move funds into and out of my checking account remotely.

I simply sign in to their on-line site, and I can move the funds to the checking account before I use a debit card. As far as cash payments go, my experience isn't typical of most people. I work on tips, so having liquid cash on hand usually is not a problem.

[aquart]

9. Me, too.

With a transaction email as soon as I do it. And if I ask them a question online, the phone rings while I'm still sitting at the computer.

I LOVE MY CREDIT UNION!!!!

Did I mention that my recent overdraft charge was $2.50?

[Selatius]

12. That's a lot better than the $35 at my old bank. My credit union charges 2.00, not far off.

Like, if I have 5 dollars in my checking account and I buy something for 10 off the debit card, the credit union automatically transfers the other 5 from my savings account, and I get hit with a 2 dollar fee.

If I'm away from my laptop, I can still access the on-line site by my cell phone, and I can simply transfer funds through that. The power of technology has made my credit union incredibly convenient. It'll take a war to uproot me from it.

[Matariki]

5. I can use any bank's ATM

and my credit union refunds all the fees.

[tammywammy]

16. Same here. n/t

[NWHarkness]

8. I haven't used an ATM in 10 years

If I need crash I stop at the grocery store, buy a soda or candy bar or other small item, and get cash back. It takes no more time, and the cost of the small item is less than half of what I'd get hit for in service charges. More often, however, I just get cash when I make my regular purchases.

[ET Awful]

10. Most credit unions will let you join simply by virtue of living near a branch.

Most are also on the SUM network and waive ATM fees for use of ATM's within that network.

Also - many credit unions have minimal requirements to join if you don't live nearby. For instance, I'm a member of the NASA FCU. All you need to do to join is buy a one-time membership in a supporting agency (cost is under $25). It's far less than the fees you'd get charged by any large bank.

There is a nationwide network of "shared branching" credit unions as well. I can make a deposit to my Digital Credit Union account from a completely different credit union that's closer to work. No fees, no confusion, and the funds are available immediately in most cases.

[hobbit709]

11. My credit union is part of the CU association.

I can go practically anywhere in the country and use an ATM or even go inside and make deposits, withdrawals, etc. try that with a bank-even with a big one.

[sarcasmo]

23. Mine is part of the same thing and there are ATM's every place.

[Gman]

13. The ATM issue is about the only drawback I know of

and my CU is partnering with all the others in town for more ATM's.

[JoePhilly]

14. My CU debt card lets me get cash at the grocery store ... with no fee.

[Le Taz Hot]

15. Most credit union ATM cards are affiliated

with a network such as Star or Cirrus. I've been all over the country and used my credit-union-issued card with never a problem. Free checking. Free financial advice. What's not to love?

[LWolf]

17. I walked into a local credit union 7 years ago and opened an account

without a problem.

Since I'd moved 1100 miles away, and out of state, I closed my account at the credit union in my previous location. I only had that account because they had a special program for buying vehicles. Members could arrange for a loan approval ahead of time, with a spending limit, call a phone #, tell the person at the other end what make and model was desired, make some choices about color, options, and after-dealer add-ons, and within a week that vehicle would appear at your doorstep. The driver brought loan papers, you signed them, and all the paperwork and keys were handed over. All at dealer cost.

I liked that program, so I joined the CU in order to buy the vehicle I'm still driving. I've never regretted it. THAT CU was primarily for workers for a local aerospace company, but anyone could join...so I did.

I do remember some credit unions that were closed, but there are at least 3 different CUs locally that are open to all.

Is that unusual in my state?

Edited to add:

I haven't experienced the ATM fees, but I don't use the ATM much. I DO use my debit card to buy things, and usually get the small amount of cash I carry as cash back from the grocery store; it saves me a trip. With direct deposit, I rarely actually go to a credit union location.

[ehrnst]

18. My CU does the free ATMs in 7-11's. No sign-in procedure, just a normal ATM.

Convenience always comes at a price. Have you thought about finding a smaller local bank that has a good track record of investment?

[LanternWaste]

19. We now refer to minor inconveniences as drawbacks...?

We now refer to minor inconveniences as drawbacks...?

I suppose if "cumbersome and long process to sign in" is the worst we have to deal with, we're much off than those who keep their money in the big banks. However, I do realize that many people maintain that their convenience is an over-riding priority in their lives-- which is the same rationale I hear from progressives shopping at Wal-Mart.




Signed,
Happy and Satisfied Credit Union Member for 12 Years.

[Donnachaidh]

20. convenience versus standing up for principles

What a PROBLEM! :sarcasm:

No offense -- but this is the exact reason WHY these big banks feel they can get away with murder. People are too damned lazy (MY opinion - ymmv) and too used to what is termed *convenience* to stand up for themselves AND others. Tell me, is the convenience *worth* that atm fee which you WILL get hit with, perhaps not now, but once the banks decide their income stream isn't wide enough?

No offense, but going from BofA to Capital One, one of the MOST predatory and vicious financial corporations out there is the only option? Really? SERIOUSLY?

OWS is in the street BECAUSE of these banks. I think all of us who aren't out there with them should take the steps we can to support THEM by sucking it up and REALLY doing what needs to be done - even if it means an added couple of blocks to go to another atm.

Or are we really unwilling to give up the *f-ck y'all, I've got mine* mindset? Convenience versus working together on a common purpose. THAT is what needs to be done.

[Javaman]

21. I have experienced zero of what you have.

most CU's belong to a network. Meaning, you can use any CU's atm and not be charged a fee. There are plenty in my city.

Here in Austin, becoming a member of the one I'm affiliated with, was nothing more challenging than donating 20 bucks to a "plant a tree" foundation. Yes, you can walk in right off the street and join.

[dionysus]

24. 1) the "strict requirements" aren't that strict anymore 2) you can use any atm, anywhere....

[sinkingfeeling]

25. My CU is over 1200 miles away from me. I haven't used an ATM to obtain cash in decades. I use

my fee-free debit card at the grocery store or Walgreen's, or Target and take cash back from my purchases.

[L0oniX]

26. Why use a ATM when you can use a debit card? If you need cash why not keep what you need...

when you cash your check?

:crazy:

[rox63]

27. My CU is part of the SUM network

which is a network of small banks and credit unions here in MA. I can use any SUM network ATM with no fee. And my CU will refund up to $5.00 per month of fees from out of network ATMs. Also, I can deposit checks at their web site by scanning them and uploading them. Also, the direct deposit of my paycheck is usually available a day early. I love being a CU member. :)

[We are Devo]

28. This is changing...

Even here in Pasadena, there are two CUs that are open to anyone.