Why do folks use banks if a credit union is available?

I think you answered your question in your details. People who can use a credit union probably do; people with no access to one are forced to use banks.

I didn’t know there was a difference until now, then again I am a college student…

I do use a credit union. I am about to give over any commercial bank accounts and use them exclusively.

@pdworkin The restrictions have been lifted greatly, and almost anyone can find a credit union if they desire these days.

@warpling Check them out. As non-profits, they are more customer-oriented in returning good rates, cost of credit cards, loan rates, etc.

I researched credit unions a little over a year ago and found I wasn’t eligible to join any. I was excited to learn recently that my brother’s employment makes him eligible for one, which in turn means I can finally join one.

But there are good reasons to choose a bank over credit unions. First and foremost, the days of credit unions having the best rates on savings are gone; most of the time, big national banks and online banks will give you a better percentage on a savings accounts and CDs. I haven’t researched loans though, so it could be that credit unions have better rates for those. Also, it’s easier to access your money through certain banks. In my research for a credit union, I found lots of them didn’t have many locations and charged fees if you didn’t use certain ATM’s, which were sparse in my area (and I’m in NYC!). Meanwhile, there’s a Chase or Citibank on nearly every corner, so you’re just about never in danger of having to pay an ATM fee. Finally, many banks have dropped their monthly fees for regular checking accounts, something that made credit union accounts more desirable.

I’m not speaking for all credit unions, of course, but I checked out many of the ones from my area, and I had a hard time finding good reasons to switch away from a bank (not counting moral reasons, I guess).

i have always wondered why do people use credit unions when there are banks available.

@pdworkin Yeah, I was just curious since I haven’t been in the market for a financial institution for a while.

My membership is tied to my employer but I know of several in my area that only require residency. I was first put off by the few locations of my credit union but they have somewhat recently joined a regional CU collective so I can bank with most credit unions in the area. I don’t use ATMs but they advertise they’re part of the Allpoint network which alleviates fee issues.

@jca Like @Marina mentioned, CUs are nonprofit entities which make them (imo) much better all around.

I had a bad experience with a local credit union and after that, I decided to stick to banks. However, the credit union that mistreated me got a welcome surprise. I turned them in to the Illinois State Banking Regulatory Commission and they ended up paying a six figure fine for discriminating against me. that was sweet revenge!

The worst part is, my family helped to build that credit union, as it was associated with the International Harvester/Farmall Company. Both my Dad and almost all of his brothers and my Grandpa worked for IH. Both of my older brothers and many of my cousins worked there as well.

I’d keep my money in my mattress before I’d put it in a CU.

@Psychedelic_Zebra Wow, that stinks! Isolated incident, I hope…!

@inkvisitor isolated for me, I’ll never set foot in that place again.

@Psychedelic_Zebra What exactly did they do?