How Credit Unions Compare to Banks
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- เผยแพร่เมื่อ 1 มิ.ย. 2024
- Credit unions are a pretty unique financial institution, given that they operate as a not-for-profit. But are they better than the banks? And are they immune to the problems of the banking sector? We dive into it in today's episode.
00:00 - Intro
01:13 - What are credit unions?
03:41 - Why credit unions aren’t more popular
07:14 - Are credit unions immune to failure
07:51 - Advantages of credit unions
09:50 - Deciding where to bank
If you'd like to support the channel, you can do so at / theplainbagel :)
DISCLAIMER:
This channel is for education purposes only and does not constitute financial advice - Richard is not responsible for investment actions taken by viewers. Please seek out a registered advisor if you require assistance (while Richard is a registered portfolio manager at WDS Investment Management, he does not provide advice through The Plain Bagel, which is not affiliated with his employer).
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Apologies for the re-upload; the original video had a copyright claim against it for the outro music, which used to be royalty-free
All of my discussion on The Jetsons has been lost.
There are credit unions like Alliant with higher APY and other better or comparable benefits to the best banks you show.
How can they just change the terms on music you already acquired under different terms?!
As a new subscriber, I'm ok with reuploads! Feel free to do more!
If a music track (or any IP) is released as royalty free, you have a perpetual non-exclusive license to use it. They can't decide later to retroactively 'cancel' those licenses and be all 'no actually now you have to pay for it'.
Using a credit union as my main financial institution is fantastic. I’ve not had any problems with branch locations because most things can be done online or at the co-op ATMs. It is great not having that “how are they screwing me over” thought fermenting in the back of my head.
Depends the type of credit union you are in.
Some credit unions are a nightmare.
As a former senior manager in a mid level credit union, and a former regulator of credit unions: They can be both good and bad, and I would always encourage you to consider "how are they screwing me over". I have also worked for a systemically important financial institution (read: very large bank), and I would say the insentives leading to bad behaviour are much lower in credit unions but can be still present.
For example, I have seen a credit union staff member falsify documents to allow a member to qualify for a larger mortgage that they couldn't realistically afford. This person was nefarious and doing it because of the bonus structure of her sales position. The more common scenario is the level of knowledge in credit unions are much lower, which led to errors with major consequences for a member.
I am sharing this to scare you away, I do believe in the credit union ethos , but I want to remind you to be vigilant. Even well meaning errors can mess you up pretty bad in the financial system.
Best wishes my friend.
It does depend on where you live or your form of employment
@@travelbyfire8474 I appreciate the nuance you shared. It’s true that credit unions can do a disservice to their customers, like you concisely detailed. What I see is that a CU does not have the same institutional incentives to take advantage of their customers like a large bank does, and although that does not eliminate the need for due diligence, it certainly reduces the feeling of hostile intent that I and many others feel about large financial institutions based on past collective experience.
Misinformed video filled with outright lies. Bank failures (SVB) were due to Federal Reserve regulatory requirements to allocate primarily to treasuries, and the subsequent (Fed driven interest rate) yield curve inversion causing the regional banks to become illiquid.
Credit unions are also exposed to the treasury market so they are not immune from bank run conditions. The actual intent of recent Federal Reserve policy was to consolidate deposits into solely the big 4 commercial banks by rendering competing smaller banks (and eventually credit unions) illiquid. Once the majority of deposits are within commercial "national" banks it will make the rollout and transfer to a new currency (digital CBDC) manageable within a few years and complete by 2026. Its release may even coincide with economic collapse and hyperinflation.
Custodial failure and bank consolidation is a stated prerequisite (within BIS documentation) for a permissioned CBDC owned by the commercial banks. So the only actual way to avoid "the risk of failure" is to use another currency, such as bitcoin, which the intro disingenuously derides.
You're right. Us Millenials didn't know what a credit union is. This was a lesson for me.
I have used a credit union for several years now. I feel like I get treated better at a credit union than a traditional bank
I feel like a lot of problems that us Millennials have with modern capitalism could be well addressed by Cooperative structures like Credit Unions, along with worker co-ops, land trusts, mutual aid societies, etc. All very popular 100 years ago and sadly atrophied today. So I'm glad to hear about them here!
Nah, YOU didn't know. Not I.... don't put the rest of us in that!
@@Heyu7her3 Nice! Got any tips for us plebs?
Misinformed video filled with outright lies. Bank failures (SVB) were due to Federal Reserve regulatory requirements to allocate primarily to treasuries, and the subsequent (Fed driven interest rate) yield curve inversion causing the regional banks to become illiquid.
Credit unions are also exposed to the treasury market so they are not immune from bank run conditions. The actual intent of recent Federal Reserve policy was to consolidate deposits into solely the big 4 commercial banks by rendering competing smaller banks (and eventually credit unions) illiquid. Once the majority of deposits are within commercial "national" banks it will make the rollout and transfer to a new currency (digital CBDC) manageable within a few years and complete by 2026. Its release may even coincide with economic collapse and hyperinflation.
Custodial failure and bank consolidation is a stated prerequisite (within BIS documentation) for a permissioned CBDC owned by the commercial banks. So the only actual way to avoid "the risk of failure" is to use another currency, such as bitcoin, which the intro disingenuously derides.
I switched over as soon as I learned what a credit union was. It's so valuable to have a financial institution that is looking out for your best interests rather than trying to profit off you in any way possible. The other day they called to recommend that I should move my savings into a high interest money market account while I was poking around mortgage applications, which is a terrific idea that demonstrates how they look out for you (a bank would be happy to hold on to that missed interest if I left it parked in checking for several months).
because they thrive off of customer success. The better you do, the better they do, it's a win-win
My dad got me a credit union account when I was a kid and they've been fantastic over the years. They gave me my first car loan at a really good rate. Waved overdraft fees when I was broke. Sent me a credit card with nice perks that's had the limit raised many times now. The teller service is always fantastic. I really feel sorry for my friends that bank at chase or boa lol.
Facts. F institutional banking 😂
Same thing my aunt help me start an account when I got my first job(25years ago) at a credit union because she worked there it's been great over the years they've treated me amazing know me on a first-name basis I've got numerous loans from them they gave me a credit line. Help me consolidate my debt when I got out of the party stage of my life I think credit unions are great and more people should take advantage of them
Mine got me a 2.5% mortgage, a car loan that I’ve since paid off, and generally has been very easy to work with. No fees. And the employees all seem to enjoy their life.
It's a bit strange in a way that the younger generation is losing grip on this, given how the sentiment against bank against that group is kind of... Negative, to make an understatement.
As a European studying finance I genuinely had never heard of credit unions, or at least I didn't know they were that similar to regular banks.
@@deeptoot1453 From the perspective of an account holder, they really are almost identical to banks, except they aren’t constantly trying to screw you. It’s incredibly refreshing.
Gotta give credit to the massive advertising push from large banks (especially promotions to students offering free $$/concert ticket discounts/etc.) to lure in younger folks. While they're claiming to help folks who are just getting started, it's really just a down payment towards consumer trust to keep them as a customer for the long haul.
@@mattjasuncion wowoww for real?? I never exited a business to have that objective.
I think it's awareness, I always knew of them because my dad's been using a credit union his whole life but I never knew exactly what they were until recently and I instantly switched especially since I've had issues with two different national banks.
I have been a credit union member for over 30 years, and used it exclusively for over 20 years. My "banking" needs are simple, and credit unions accounts are often fee-free. I use accounts at different credit unions to receive direct deposits and pay bills.
I've banked with credit unions since university. The emphasis on member service has always been great, but years ago, it was a large hassle because the shared ATM and branch networks didn't exist yet, and on-line banking was still very new and limited. So it only worked if you lived and worked where the CU had physical presence.
Nowadays, though, I live a long way from the nearest branch of my credit union and it doesn't matter. Online banking, the shared ATM networks (including sometimes making deposits at ATMs!), mobile deposits, and the mail make it possible to do everything remotely.
It's unthinkable to me that so many people still bank with the large banks, especially with all the stories about how they try to rip their own customers off. Customers are really valuing the wrong things if their mobile apps or on-line banking being slicker is so much more important than not being predated on by your checking account, being nickel-and-dimed constantly if not outright defrauded. All you need is the $5 or $10 for the one share, and beyond that, no minimum balances and no nonsense. I'd rather keep my money at an institution that is clearly looking out for me and my money, not trying to pick my pocket when I'm not looking.
Eh the amount I deal with anyone in and around the bank is less than 1 time every few years. I’ve always had a credit Union but this video has me thinking I should get rid of it. No benefits.
@@wesleyskinner9477 Maybe for you, but for Americans living overseas the credit unions have become a crucial lifeline to basic financial services as banks have kicked out overseas residents rather than doing compliance for know your customer laws and FATCA. For the below quote, the ACA is American Citizens Abroad, an interest group that helps to represent their needs and concerns.
"In the wake of changes in US and foreign securities laws and regulations, including the Foreign Account Tax Compliance Act (FATCA) rules, many US banks are pushing away US citizens who reside abroad. US and foreign securities and other regulatory rules make it very difficult for banks to service this market and, frankly, many US banks are not intimately familiar with this type of customer.
ACA teamed up with the State Department Federal Credit Union (SDFCU) to help provide accounts for Americans residing abroad. This is the same account used by US citizens working at US embassies as well as many other people living around the world. You can reside full-time or part-time abroad and still qualify."
I do think credit unions are an underrated option that a lot of people don't explore. Like your local library!
Can I open a term deposit or get a home loan at the library ?
@@eddenoy321 probably depends on how many books you can check out and sell.
@@eddenoy321 Yes, they usually have computers with internet.
I worked in the credit union industry for 11 years, so I have always used them as my primary financial institution.
I used to work in a big national bank. I had several of their products. Not that I am retired, I use a local credit union. Everything you said about how they compare is accurate. But I much prefer my credit union at this point in my life.
I'm a member of a Credit Union and until now, I thought it was a bank, overall I'm happy with it, I have never had any issues with them and I have never been charged any hidden fees.
One issue with credit unions and building societies is that due to their smaller scale they aren't able to cost-effectively manage the technical side of all of the payment and transfer processes as well as a large bank does (due to economies of scale and technical know-how). There are banks that offer a service to credit unions where they share their back-office and technical services in exchange for a fee. In these cases the credit union is effectively outsourcing all the processing/back office work to a large bank, which then makes the profits on providing that service. Often this is not transparently notified to members of the credit union, who might be under the impression the work is done in-house.
One often understated benefit of credit unions is that they typically offer more useful resources for first time borrowers (eg mortgage) , local business owners looking for loans, etc. I don't just mean rates either, I mean education and assistance that would typically be hard to come by or unavailable through typical banks.
I love my credit union. Could I get better rates? Maybe? But they're still very competitive and have worked with me when I needed them where banks wouldn't.
I also enjoy the smallness of it. Their customer service is legitimately the core of the business being that they are a small community credit union and it makes me feel good supporting that type of thing.
Same here, I use a local credit union and only have good things to say about them.
I joined my credit union over 20 years ago, and don't even live in that state anymore. They're great. They credit me back for ATM fees, and have better terms that what's available here. I can't imagine using a bank.
For several years I dealt with only Large or Large “Community” Banks. Their fees kept getting quite out of hand and there really was no way to get assistance, help or information on a personal or small business level.
Credit Unions were problematic because they were very hard to access except by physically going to them and there weren’t many “branches”.
Now, Credit Unions have adopted many “Big Bank” aspects and have become much more User Friendly in the process.
As of about 8 years ago I found a CU that offered a VISA Bank Card (works like a CC everywhere), uses an APP for 24hr Online Banking Procedures (just like Big Banks), accepts Direct Deposit and makes and receives Transfers and recently added Check Deposit by Phone.
So it pretty much does EVERYTHING I’d want for Banking Services and I like the idea that my deposits are being used in My Community to help My Friends, Neighbors and Small Businesses.
I think it'd be worth it looking across the pond for this topic. In Germany there's something called "Genossenschaftsbanken" which are pretty similar to what you describe as a credit union, but established. They are regional but don't prohibit you from becoming a member for some arbitrary reason and most of them are united under one brand (VR Bank), which means they cooperate on stuff they can't really do on their own like offering a good online service.
For many people these kind of banks are used for their primary deposit and they're a core pillar of our finance system. Some say it's part of the reason why we took the 2008 financial crisis so well compared to other countries.
Sounds like something to check out.
As a German, I can tell you that these banks suck. They are unable to provide good service, especially in regard to online banking, they charge high fees for credit/debit cards, they try to sell you bad products and they are currently merging en masse, since these factors prohibit them from turning a decent profit. So called neo banks are taking over the finance space in Germany and these regional banks are losing relevance, as their business model does not fit into a modern and digital world. They are basically the banks for the elderly, as this type of demographic is not familiar and hence doesn't expect good online service.
Genossenschaftsbanken has to be the most german word I've ever heard of.
@@kersacoft its just the word bank in a trenchcoat
@@gruntlord6 Sounds about german.
I’ve used two credit unions both Navy Federal and my local credit union. Never had trouble with either withdrawing cash in foreign countries and if that is something you worry about you can always use Wise (formerly called TransferWise). WellsFargo was terrible compared to both. I believe everyone should use a credit union if you don’t want to be ripped off.
In the past, networks mattered more. Here in the US, it is extremely common for credit unions to reimburse up to a certain number of out-of-network ATM fees. With mobile check deposit, I haven’t actually needed to go to a branch for years.
We've been with a credit unionn for many years, and have been pleased with everything, especially the responsive customer service. Our particular CU has great online/mobile services, and I haven't had to visit a physical branch since 2018. They may not work for everyone, but they are worth a look.
Whats your cu name
This was freakishly timely, I recently moved to Tennessee which doesn't have enough Chase locations to service my banking needs, everyone here is with a credit union instead. Thank you mr. Bagel
What region of the state are you in?
I refinanced my mortgage through my long time credit union and absolutely loved the experience. Everyone I worked with was local and understood I didn't get handed off to a third party customer service organization. I may not get the best HYSA rates but I did get a great loan rate for the time.
Been with Pentagon Federal CU for over 30 years. Full services, great online presence, terrific member experiences. We do minimal banking with a large national bank out of necessity, but they have had multiple scandals and have lost a lot of trust.
I’ve exclusively banked with my local credit Union and it’s fantastic! Their services are absolutely unmatched by any big guy and they’re always helpful.
You are right on the international front though, even buying online products has turned into a headache when the software happens to be headquartered in belgium or whereever.
Another hangup ive experienced is not being able to Zelle, although Im not sure if thats all credit unions or just mine.
Great work as always, I understand the world more when your videos come out! Thanks 🎉
I agree, great content!
Misinformed video filled with outright lies. Bank failures (SVB) were due to Federal Reserve regulatory requirements to allocate primarily to treasuries, and the subsequent (Fed driven interest rate) yield curve inversion causing the regional banks to become illiquid. The Federal Reserve (commercial banks) forced regional banks to buy bonds with customer deposits and then later destroyed the value of those bonds themselves by raising interest rates.
Credit unions are also exposed to the treasury market so they are not immune from bank run conditions. The actual intent of recent Federal Reserve policy was to consolidate deposits into solely the big 4 commercial banks by rendering competing smaller banks (and eventually credit unions) illiquid. Once the majority of deposits are within commercial "national" banks it will make the rollout and transfer to a new currency (digital CBDC) manageable within a few years and complete by 2026. Its release may even coincide with economic collapse and hyperinflation.
Custodial failure and bank consolidation is a stated prerequisite (within BIS documentation) for a permissioned CBDC owned by the commercial banks. So the only actual way to avoid "the risk of failure" is to use another currency, such as bitcoin, which the intro disingenuously derides.
In Canada, credit unions often are the only source of lending for NPOs, farmers, etc since the big banks won’t. I use CU for both business and personal because their services are good and the big banks are horrible.
Thanks for looking outside of mainstream finance for once. In Ireland, most of the population are actually members of Credit Unions, and it has long been normal to get an account with them as a child. They are really embedded in daily life.
I'm a member of a credit union here in the UK, and also a Building Society. The Building Society recently announced it was going to pay out £100 to all members.
It's fantastic that Nationwide are doing that, but, it's the first time they've done it in the almost 20 years I've been with them.
My credit union as paid out dividends yearly. Even tho all I have with them nowadays are students loans that where at 0% until recently. Felt good last year to get 90$ish just because I had 10k worth of 0% loans (my account doesn't have monthly fees).
Been banking with a credit union all of my life (a/k/a parents started me with one). I also manage an FDIC insured online bank mainly for the emergency fund, and operate a international bank for travel. Looking towards potentially consolidating my accounts to hit all my financial needs but having been banking with the credit union, they 100% treat you better and offer better service. The online bank had some weird rule where they don’t allow you to withdraw $500 within 6 months of opening an account. Did the same thing with credit Union and they were like “Oh yeah we can waive that. Give us about an hour and it’ll be lifted. The block will be reinstated within 24 hours however”
As a canadian, I'm wondering why you never mentionned Desjardins Group? the largest credit union in canada by a factor of 10. With most of the population of the province of Quebec having an account with them. It gives an idea of what happens if a credit union matures and becomes a major player in the banking world.
i was expecting a mention since he is from ottawa, it's the most present financial institution for the french population.
Bc Quebec doesn’t have money to put in a credit union
Yeah I was hoping he'd at least present the example of Desjardins and how it works for most people in Quebec.
Thank you bagel man. Great video as always. So glad I found you channel!
When he played the hold music my heart skipped a beat. I'm so unbelievably happy.
Also shoutout to the financial cooperatives!
I love my Credit Union. I've been a member for 12 years now. No fees, clear breakdown of my returns. I once worked for a family owned Finance company that still insisted on physical paychecks. If I deposited in person, no problem, if I deposited via the co-op ATMs though, my pay would be held for 2-3 days while the check cleared. I put up with this necessary evil of convenience for about 6 months until finally mentioning it to one of the CU staff. He said, "no problem, we'll take care of that." And they did. Not only did my paycheck balance apply the moment I deposited, but now that I have direct deposit with another company, my pay hits the moment the ACH begins ( I essentially get paid 2 days early). My only complaint is they are, of course, regional. Now that I live in another county it would technically take me an hour to drive to a branch- but I haven't had to go into one in years so it's been ok. :)
Thank you for all your hard work on these videos. It's very much appreciated.
I'm in credit union and I remember 1 year I got more out than I put in (as I was not useing it as my main bank at the time) and I was really weirded out. Was nice to get paid to own an account though
I really like the idea of spreading out savings among multiple institutions. Schwab has had pretty good CDs for a while, the JP morgan Marcus account has a great savings rate, and a Credit Union can give you a good tie to your community and good loan options. Nothing wrong with spreading your money around.
I think the diversification like that's a good idea. That way you don't have it all tied up in one
Happy Navy Fed CU member here. Joined the CU when I joined the service, and got my parents and the rest of my family into it. They have great customer support, and one of the biggest; which is a surprise to me but it makes sense. I only have 2 other banks that I only have a few hundreds of $$ in.
Love your no nonsense style of education.
Thanks for breaking it down. I knew a little bit about the differences but nothing this comprehensive before.
I recently joined Penfed, and I'm really happy. In Puerto Rico, they pay the highest interest. Even more than the banks that do business here.
I love the idea of credit unions but dealing with them has been such a personal nightmare I'd be very hesitant to rejoin. Both my parents lived far away from me and had a local credit union as their only bank before they passed. It's be maddening trying to work with them. I'm currently preparing to spend hundreds of dollars to travel in person to this branch because it's the only way to actually get anything done. Back when I was a member my card would get erroneously flagged for potential fraud all the time and poor technical infrastructure made it very hard to manage my money, even with a co-op network. I didn't realize how difficult it was making my life until I switched to a larger bank and all of these problems disappeared.
Maybe I'd join a larger credit union in the future but for right now the inconveniences are just too high to feel worth it at this stage in my life. And I highly encourage anyone over the age of 40 who is at a credit union to make sure their end of life plan takes the particularities of their credit union into consideration.
My stepdad opened an account with NFCU for me when I turned 18. I think it was one of the best gifts I have ever received. I have never had any issues and I would never consider using a traditional bank after being with a credit union for 40 years.
OMG thank u so much for covering this
Nice video. Very informative. Keep up the good work.
Thx Mr. Bagel for the clear explanation of Credit Unions. Please look into insurance companies. Rates are going up, even for responsible people. I want off that merry-go-round, but do not know of an alternative to the regulars, as I call them.
I'm a developer who has worked in banking. I consider it #1 priority to add all the modern accoutrements to credit unions, not because I care about the convenience, but because banks are a vampire squid on the face of humanity that must be starved of power.
Thanks for the great explanation Richard!
I’ve been with USAA for 18 years now and will never leave. Nice succinct explanation and comparison
I switched to a credit union a couple years ago and am very happy I did, but you forgot the one big disadvantage to having no physical locations of your bank: it's much harder to get quarters for laundry!
Best I have seen from credit unions is not deposit rate, but loan rates. In loan rates Banks and credit unions are not even close. Credit unions typically crush banks.
Excellent video. I bank with Navy Federal Credit Union and I love it.
Great video, sir. Appreciate it
Great vid on credit unions! I've belonged to a couple since the mid 90's. Would love to hear your insights on worker co-ops. Seems to me we are often mad at big banks and big business when the solution is right under our nose.
My parents created a youth account for me at our local credit union and I have been a member basically since I was 10😊 local car dealerships love dealing with credit unions over banks
Thank you for your unbiased informative video
Travelling has always been hit and miss with credit unions, you don't even need to call a big bank anymore to tell them you're travelling, credit unions may block your card if you don't tell them.
Travel notifications are pretty easy to set. I traveled for a whole year with my credit unions.
@@myleshungerford7784 Which credit union did you use for the foreign transaction/withdrawals? Or did you have a credit card with no foreign transaction fees?
@@wlee9888 I have two solutions to foreign transaction fees. The first is a credit card from my CU with no foreign transaction fees, which are becoming fairly common these days. The second solution is for cash, which the best solution I’ve found is a Charles Schwab bank account. With Schwab you can access any ATM and the ATM fee will be paid for by Schwab. If I can find a credit union with this same deal I would open an account immediately.
I'm in workforce and a Credit Union member for a decade now. My CU doesn't fall short of anything that a known bank has to offer. Yet, I closed down my regular bank accounts many years ago. My CU ATM card works nationally in any other one CU's ATMs. It has online banking to make payments, transfers, check deposits, etc. Plus, there aren't any minimum requirements, or they don't nickel and dime you for unforeseen things. Their only shortfall is people's awaraness of them.
In the US, needing to perform physical transactions at a branch while traveling out-of-area isn’t really a problem if you’re a member of a credit union that participates in the Co-Op Shared Branches program (many, if not most credit unions participate in this program). Otherwise, Navy Federal CU is pretty much the only US credit union that comes close to having a nationwide footprint. With respect to ATMs though it doesn’t really matter what credit union you belong to as virtually all of them belong to one or more national no-fee ATM network.
I do love my credit union, after my divorce and everything with it, my credit was crap, they still gave me a credit card with 7.9% rate. Also if I need a loan, I just email or call them up and I get approved or we talk about the terms of the loan, then they approve it. But the savings rates are currently pretty bad, that’s the only down fall.
I work for a credit union and our focus heavily switches towards being goal-oriented and salesy
I joined a credit union 25 years ago after my bank account was transferred for a THIRD TIME in less than 10 years due to acquisition of my local bank by a regional and then a national bank and the customer service got worse and worse, and the fees went up and up.
I have a credit union that I joined when I was living in NC, which I still use to this day despite no longer living there. While I can't go to the CU's in person, it doesn't matter in this cashless age. The little bit of cash I do need, I just get it from groceries stores.
My issue is that I run up against monthly required EBT activity where if I dont use the debit card 5-18 times a month I get penalized. I use credit cards 99.99% of the time for fraud protection and to reap rewards points on regular purchases and this limits checking activity to 5-6 times a month for CC payoffs. All of the credit unions I have considered in my areas have a similar requirement so I'm still banking with a national bank.
I have an account with a credit union, but I use a large bank as my primary financial institution. The reason I use a bank is the same as the reason stated in the video: I move and travel frequently. A credit union just isn't practical right now. Once I'm in a position where I no longer need to travel, I plan to use a credit union for my primary banking.
I can see that I suppose but these days any credit union of notable size has really robust online/mobile banking systems. It's gotten to the point where I haven't even had to go in to a branch in years, even when applying for a loan. I've had no issues getting money either. As long as I call them beforehand I've never experienced a problem..
If your move is within the US, sure, but if you're going to reside outside the US the credit unions are again better (because they'll actually serve you). To quote American Citizens Abroad:
"In the wake of changes in US and foreign securities laws and regulations, including the Foreign Account Tax Compliance Act (FATCA) rules, many US banks are pushing away US citizens who reside abroad. US and foreign securities and other regulatory rules make it very difficult for banks to service this market and, frankly, many US banks are not intimately familiar with this type of customer.
ACA teamed up with the State Department Federal Credit Union (SDFCU) to help provide accounts for Americans residing abroad. This is the same account used by US citizens working at US embassies as well as many other people living around the world. You can reside full-time or part-time abroad and still qualify. Many banks require clients to provide a US residential address to open an account. This makes it difficult for Americans living overseas. With SDFCU you can use a foreign address to open your account as long as it is your residential address where you live. "
I bank with both a credit union as well as large multinational bank. The credit union 's digital experience and ease of operations faaaaar outweighs the bank's. I also travel internationally a fair bit and often buy stuff from international websites - never had a problem so far. I also find the credit union surprisingly receptive to feature requests for their banking website.
I’ve also never had any trouble internationally.
If you have generally simple banking needs credit unions are the way to go and will worknfor most people. If you have large investment accounts that needs wealth management services or you have complex business accounts, you will probably want a big bank. I have worked on both sides and currently work for one of the biggest credit union in California. There's definetly pros and cons to both, but for most people, credit unions will work better.
Thank you for this video.
I've been banking with Eastman Credit Union for about 10 years and I love it. Every year they give back and extraordinary dividend around February. It seems to average around $100, but I've gotten as much as $400 before.
I have a checking, savings, and credit card through them with no monthly fees, no annual fees. The credit card gives me back about $200 per year in "pay with points" and since I pay it off every month, I actually profit off this card.
I also have my mortgage through them at 3.75% in a fixed rate that pays off in about 9 years.
A personal loan is only a phone call away, and I can completely close the loan in a few hours with the funds deposited almost immediately after my docu-sign. I've taken out and paid off several small personal loans through Eastman.
I'll never go back to a traditional bank again!
We bank with a credit union. We have been a member for 8 years now and think it is just as good if not better. Thank you for making this video.
I moved to Belgium and got a mortgage here.
During my research, I also encountered credit unions but weirdly they were not interested in immigrants as customers.
In the end, I am using the biggest bank here and I am quite happy with their services.
Meridian CU in Ontario Canada has been great so far!
Navy Fed has been amazing! Banking has been difficult, specially for someone who travels a lot, but its been getting better with their network partners.
@@bill_the_butcher Some places you'd expect to have a branch just didn't have it.
I.E. I lived in Manhattan for a while and the closest branch was either in Jersey or King's Point. They did add some network partner ATMs in Manhattan where you can deposit cash but no physical location. Just things like that.
Please do a video on insurance companies which were once listed as too systematic and important to fail and have been hit hard due to the confidence crisis in banks ✌️
I would love someone to start and insurance company that works like a credit union. Say only able to be a member if you have have had no problems/claims for 10 years.
I am not from the US.
My bank is sort of a hybrid system : it belongs to a union of banks where every small bank is a shareholder.
It targets young people who graduated high school with awards, and is therefore seen as dynamic. It is very practical when you move and/or travel a lot since everything was designed to operate remotely, despite the bank being small, traditional and local.
We have many credit unions in Australia, many run by Trade Unions. We use credit unions for our daily banking, with VISA/MC access. Many of the CUs here have started merging
The big pro I’ve had with my credit union is just a lack of hassle overall. Most of my friends have transferred to it to avoid fees and charges from big banks. When you’re poor those fees add up really quick.
I’ve banked with 2 different credit unions and both of the websites were sketchy as hell. My biggest concern with them is cybersecurity which is why I’ve switched to an online centric bank (ally)
Opposite experience for me. The U of M credit union has a great website and app. I haven't used Ally, but the credit union is hands down better than CIT (another online only bank, now owned by First Citizens if I recall) and handles website and app security better than a large national bank I deal with.
Northern Birch Credit Union (3 branches in Southern Ontario, but with great online functionality): ... for the win! [formed by the joining of Estonian Credit Union and Latvian Credit Union]. They're the best deposit taking Financial Institution with which I have ever dealt.
Great video(s): thanks for the efforts
I work for a CUSO for a federal credit Union, great place to do your banking imo, and working at one is great too. Love my field of work with credit unions
Thanks for this. My dad got my family into a credit union over 20yrs ago because at the time you had be family to join. Best decision I ever made. Their credit card interest rate is less than half of a normal card, even with a rewards version credit card. Their auto loan interest rate wasn't competitive enough so we bought a car through the dealer. All in all, the low risk, relative transparency, and trust hasn't let us down yet. Sad that so many youths aren't taught about this option.
I work for a Credit Union call center in the U.S. and this is a pretty accurate description of the differences. We are certainly more lienient with giving back NSF or Late fees than I ever experienced with the major national banks. Even though membership eligibility is required through a family member, community organization or SEG (Select Employee Group), you can join some community organizations and qualify for as low as a $15.00 donation. To your point on special deals, many credit unions offer a strong annual percentage yield on deposits up to a certain amount, so it can be a great way to store extra savings and make some dividends securely.
My credit union is great and I highly recommend them. I get a dividend each year and don’t have to deal with various fees. I certainly feel safer from predatory practices that occur at some larger commercial banks. I still use other banks for things like an online savings account for better interest and credit cards for travel points.
I've been with the same credit union since 2009 when I was 18/19 and trying to establish credit. I use the credit union for my savings and credit card and had never a bad experience. The one downside I found is that since I moved to a different state since joining, I couldn't get a mortgage through them. Otherwise, I have never had a complaint.
Now I want a video dedicated entirely to ripping apart our telecom and mobile industries. Love from Alberta.
I had a credit union as my primary until late last year. I realized most of my savings wasnt making much interest, so i took most of it to an online bank with a higher interest rate. And well all my transactions go through my credit union, and the online bank is just where my money sits. I do have a huge travel plans soon, so i am worried about liquidity from the online bank, but I'll deal with that when i need to
I learned the basics of banking and credit unions in 1987 in a entry level training for bank tellers. I joined a credit union shortly after and tried to maintain a membership whenever possible.
So much better than banks in so many ways!
Unfortunately in Canada, many of the credit unions are becoming large, merged giant institutions where board of directors, while are elected, of many credit unions don't push members to be involve and often just push to increase profits. When people join credit unions, it is very important to get involved. Understand and vote for your directors. Join ones that push for what you want. Vancity for example does alot of community investment and supports many environmental.initiatives in BC. WFCU in Ontario has started programs that help members get out of payday loan cycles etc. But some have just focused on growth and have closed services in some cases in underbanked areas. While they are better than many banks, credit unions are only effective if membership is involved.
The thing is, anyone savvy enough to shop for rates isn't going to pick a credit union because they haven't had the best rates in decades. A modern online bank will refund ATM fees, so having low or no ATM fees isn't really an issue. I really like the idea of credit unions, I just don't like them enough to lose money over it.
The simple solution to a lot of the issues you mentioned is having accounts with both credit union and banks, save money with the credit union while only using the banking platform for expenses and that way you benefit from the credit union and also have the convenience of the mobile platform of the bank
I'm a millennial, and I've used community bond credit unions exclusively my entire life. I might use a bank when I have the assets to benefit from their best rates, but right now, the credit union offers me better on everything I need, Better mobile app access than most, and unparalleled service. I started with a regional that serves my alma mater, and that's still my primary account, but now that I'm moving to DC I picked up a Navy Federal account to help facilitate physical access. I never considered whether to go with the bank, just which credit union to use.
0:20 Using the hold music there actually triggered me, I hate that hold music 😂
I prefer credit unions in general. The main reason is that they are local and when I need something, the representative I am speaking to does not have to contact someone at head office in Toronto or wherever to be told what to do. They talk to someone in the same building! I am also not subjected to advertisements on the phone app or the website. Their mortgages used to be better than they are now, with rebates and stuff, but I don't find that to be true as much now. Unfortunately I had to go with CIBC recently for a mortgage, but as soon as I can I will return to the local credit union.
my credit union has a VISA debit card which allows me to withdraw money internationally for a small fee. it's also part of the NCUA, which means access to free ATMS in most cities. The only drawback so far is lower interest rate for the savings account
Heard that "on hold" ringtone for .5 of a second and felt my stomach drop. Don't know how long ive listened to that song in total while on hold with the VA.
I ve been part of a credit union for 9 years, and yes i do agree that they have many limitations but when those limitations doesnt bother you, you have access to a pretty interesting part of the finance world, having a more personal approach does make a difference when it comes to getting services like loans or just opening an account.
I’ve literally never banked at a regular bank. My parents opened up an account for me when I was born at Navy Federal Credit Union (my father was in the Marines for 20 years).
It never occurred to me to use a regular bank. Why would I? The fees are outrageous, and just frankly, stupid.
If you’re banking at a regular bank, make the switch! You’ll be thrilled you do.
I use a bank with a large presence in my area, but not an especially large presence nationally. I suppose it's possible they're an unusually good bank, but I've had great experiences with them. The customer service has always been good, and their rates are usually superior than what is available at the local credit unions.
Fully switched to a local credit union in 2008 for obvious reasons, never looked back
Ive been with Navy FCU for a lifetime. They got everything I need. All my family bank with them.