In 2011, two of the United States' largest banks threatened to levy a $5 monthly fee on their customers for using debit cards. Ever since that time, big bank customers have slowly been switching the funds from national banks to a local credit union. Have you considered this action? If you're not quite convinced yet, let's compare the two options. There are advantages and disadvantages to each: Access to Funds The majority of banks in America are national chains. You can find a local branch and ATM just about anywhere you travel. This makes withdrawing or depositing funds effortless, even when you're on vacation. And large banks typically have weekend hours - a convenient option if your weekly schedule is too busy for banking on workdays. Since its goal is to serve the local community, a credit union is limited in its area of service. However, if you are on vacation and need to make a deposit or withdraw, you can often find a participating ATM nearby. To compensate for the lack of branded ATMs, many unions offer to reimburse customers for the fees associated with using another bank's ATM. Some set a limit - usually around $15 per month - but others are unlimited. Service to Customers Smaller institutions tend to have higher customer service rating, simply because they can offer the personalized service that a large chain cannot. However with the large jump in customer satisfaction among JPMorgan Chase customers, big banks are quickly catching up to the smaller institutions. So, for the present, big banks tend to trail the smaller institutions. However, as the popularity of using a local credit union grows, so does the clientele. More customers means less time for personalized service. In light of client growth within smaller institutions, customer service ratings have taken a hit. Fees Applied to Checking Accounts National banks are responsible for a large amount of money. Higher fees are levied for account maintenance and overdrafts. According to MoneyRates.com, the average customer spends about $150 per year in checking account maintenance fees. This doesn't include the extra $30 per overdraft when a customer drops below their limit. And you also have to account for fees to use out-of-network ATMS - an average of $2.60 for each transaction. Since a local credit union cuts out much of the overhead associated with a big bank, you'll find fewer fees. Some credit unions offer free checking account maintenance, while others charge as little as $24-$60 per year. You'll also find that the limit for how much money must be maintained in the account is much less - often $30 or less as opposed to a bank's requirement of $5,000. Overdraft fees still apply - typically $20 or $30 per overdraft. And as mentioned above, ATM fees are often reimbursed. Interest Rates At this point, interest rates are probably higher at a local credit union, but yield so little that there is very little comparison. It's more important and beneficial to consider accessibility, fees, and customer service as you decide where to keep your money. When in need of a trusted credit union, Saginaw MI residents rely on Wildfire Credit Union. Learn more at https://www.wildfirecu.org.
Related Articles -
credit, union, saginaw, mi,
|