Credit unions are groups of people who bring together their own cash. It's used to make loans to fellow members, even to the point of mortgages for the larger credit unions. They're limited in how they invest the money held for members, in that every loan or investment they make must be as free of risk as possible.
Because most are local, they don't fret about tiny loans (in regular banks, the cost of a small loan is often bigger than the fees and interest paid back). And the interest on those small loans goes back to the members (after costs), so they can afford to pay more interest on moneys on deposit.
Credit unions can also get better deals on insurance, if you need it. So, usually it's a better place to keep your money and have a membership in.
Banks do have their place in the economy, but most, nowadays, have grown too big to really be working on the depositor's behalf, unless the depositor is a major business.
Credit Unions are beating banks all over the country. They have fewer miscellaneous charges than banks do. For instance, I have a small retail business and sometimes take in cash. My bank, which is a large one ,CHARGES ME for cash deposits. A credit union would not do that. I am in the process of changing over to a credit union.
People use banks because they have a national presence, and advertise a lot. But most people do not need a national bank. But with ATMs, electronic banking, etc credit unions are quite available and useful. ditto all of the others re the advantages of CU's.
I left Chase when they decided to charge me a monthly fee to have my money in their bank.
Most people don't bother to check or think you have to jump through hoops to be a member of a credit union
$10,000 2 year Cert of deposit 1/10 of 1% interest B of A
$1,000 2 year Cert of deposit 1 1/4 % interest my Credit Union
My credit union pay 10 times the interest for a 2 year certificate of deposit.
It charges no monthly or yearly fees with or without a checking account and with or without direct deposit.
When I was with B of A they charged me a $25 fee because I made more than 4 deposits in one month on a $40,000 account. I closed my account with them at the end of the next month.
Credit Unions are like banks except they don't have stock holders EXPECTING to be paid a profit every quarter.
CU members are the stock (share) holders.
I've been a member of CUs since the 70s. I will not join a bank.
There are usually no fees at CUs. However, I've been paying a $1/month fee for the last 2 years for Identity Theft protection.
I also get higher rates of return on my CDs because I have over "X" amount of dollars in the CU.
I had to deal with BofA when I worked (we had to use their credit card for travel expenses, etc.). I was glad when that circus was over.
My personal history has taught me that any company with the word "America" in the title is out to screw everyone.
