I have already earned more money in interest in 1 month at a credit union than at 10ish years at a bank. Make every 5th of the month Bank Transfer Day.

Rules_of_Acquisition · 5 months

3: "Never pay more for an acquisition than you have to."

youbetcha78 · 5 months

I was deep in the grasps of Wells Fargo (auto loan, credit card, and mortgage) and wanted so badly to move to a credit union. After a very nice telephone conversation with a person at a credit union I found online (most of their employees are former employees of Wells Fargo), I opened accounts a week prior to Bank Transfer Day and marched right through the lobby of Wells Fargo on November 5th to close my accounts. There were 3 other families that came at the same time to close theirs. It was the best Saturday of my life.

I went back last week to meet with my credit union and they bought out my auto loan from Wells Fargo (went from 19% interest to 6%) and used a portion of that refinance to close a Discover Card account as well as make a healthy payment on my WF Visa. I go back this week to get a visa with them and transfer the balance. Judging from the wincing and strange faces that woman at the credit union made when she saw how much interest I was paying on the WF Visa, I'm going to make a guess that it's going to be much lower with them too. So far, just refinancing my auto loan saved me $200/month!

My next target is the mortgage!

Don't think for a second that it's hopeless for your to move your money. I can tell you that it'll be well worth the effort.

And just in case...I'm just going to leave this here

EDIT:Not that it's anybody's business, but since I'm getting slammed with "you're stupid" and "you're lazy" comments, perhaps it's easier to understand that several years ago I was diagnosed with Stage 1 Cancer and had to undergo extensive surgery. That caused me to live with short term disability and things suffered. Sometimes life happens when you least expect it. I'm much better now and everything is back on track. I have a job that pays very well and I got my situation repaired. Pardon me, but fuck you.

ruzkin · 5 months

Reading this thread... holy shit, what is wrong with your banks in the US? Australian big banks must be performing some fucking wizardry, because I pay $5 a month for my account with Westpac and earn a steady 6.05% interest on my savings, no term deposit required.

Only now do I understand why you guys are so angry.

Dr_Scientist_ · 5 months

This is false. Right now, interest rates are higher at credit unions than at most major commercial banks on average. It is also true that savings interest and interest from CDs is rock bottom compared to even just ten years ago at virtually every bank in the US.

However, the figure you've quoted in the title is either grossly exaggerated or the result of incredulously choosy banking habits. If you want to defend the title on its merits you need to show that your credit union's 1 month interest rate is so great that your deposit made a higher return than your 120 compounding months of previous banking history. Given this chart, pulled from creditunionsonline.com advertising this very issue, you're wrong by a huge magnitude. Given interest rates now, this should actually work the other way around. I would believe that 1 month of savings interest 10 years ago would give you more than what you can get at today's rate for ten years into the future.

I get it, banks were involved in an financial gang-rape of the world economy. But if you think you're doing anyone a favor by deliberately misrepresenting the financial benefits of a credit union you're mistaken.

Chicken-n-Waffles · 5 months

What product did you buy because standard Money Market savings are practically the same everywhere.

A 90 day CD is a dismal .1-.04 percent. You had to buy something above the $50,000 range to get a 30 day return like that.

omegared9 · 5 months

Just found out that I have been paying a 9 dollar monthly service fee at WellsFargo, can not wait to go back stateside and toss this fucking bank.

imidan · 5 months

I've been putting my extra money in Discover savings. They used to be a lot higher, but now they're down to about 1% apy. Still, I make $.07 per month on $2000 in my major bank savings account and on the same amount at Discover I'd make about $1.66. So, it'd take about 2 years to make as much on interest at my main bank as at Discover. Obviously, it's still not a great way to Get Rich Quick. But it's an okay place to store my emergency fund. And just inconvenient enough to get at that I'm not tempted to blow it on something stupid.

Right now, my local credit unions could not do better for me than the big banks that I'm using. But I'm hyper-vigilant, and don't pay fees at the banks I use. The moment they start charging fees that I can't get around is when I move to the credit union.

3932695 · 5 months

Alright I'm an ignorant overseas student who only knows how to do homework and exams.

What would I lose/gain from swapping out of Bank of America into a Credit Union? Wikipedia doesn't really help me.

Thanks in advance.

mugsnj · 5 months

I hate self posts that give no details. If what you're saying is true, then frankly you made bad decisions for 10 years. It was just a few years ago that you could get 3-4% interest on savings accounts at banks. So if you've earned more interest in one month than in the last 10 years, then you screwed up for the last 10 years.

Either you had all of your money in a checking account that didn't pay interest (dumb), or you suddenly have 100 times more money than you had for the last 10 years.

Writers_bloc · 5 months

There is another Bank Transfer Day set for December! Let's make round 2 another success.

jcmcbeth · 5 months

Is closing my bank account going to hurt my credit? Currently I have an account and credit card with Wells Fargo. I have had my bank account since I was 18. Would that count as one of my lines of credit, thus closing my oldest line of credit? Or is that not considered in your credit history?

Gordonb0mbay · 5 months

I worked at a small community CU for a good amount of time recently and our rates were always a little bit better than the big bank average on almost everything(except loans, you can't really beat them there[on rates i mean])

rawr-r · 5 months

Is there much difference between big banks and a ponzi scheme? The CEOs take huge bonuses and hope every customer doesn't withdraw their cash at the same time. The banks however doesn't just close and keep everyone's money because the government keeps bailing it out. This seems pretty outrageous.

FalconOne · 5 months

Similar experience for myself. after about 8 years with a big bank, My first month at a credit union net'd me more interest than the 8 years I was with the big banks.

8 years at big bank = $.01 interest

1 Month at Credit Union = $.40

I know my figures from this, every month I keep a report of banking records/statements. that 1 cent in interest I got form a big bank took me by surprise when I saw it in a statement, so much so that I actually noted it on my records for review at tax time in case there were more, sadly, there was not.

Simmerj94 · 5 months

I'd feel bad leaving USAA though :x

EDIT: Typo.

5 months

[deleted]

gamma57309 · 5 months

So, I feel the need to share my experience with a credit union. I recently moved and decided it would be an excellent time to switch my money to a credit union. I went in and told them that I'd like to open a checking account and then they let me know that I didn't have the right kind verification. Of course, it took 3 minutes of the first woman I talked to and when she didn't know if what I had counted as proof of residence, another woman came up and, at the same time, berated her co-worker and bluntly told me to come back with the right forms. Fine.

I come back with my lease a few days later (he had to mail it to me) and this time I get shunted off to a manager, who then tells me that my lease isn't good enough. What was good enough though, was bringing in my driver's license, social security card, passport, lease, and a bank statement. When I explained that none of those things had my current residence on them except the lease, she said it didn't matter. Right...

Finally, I make it back to the credit union with everything she wanted. This is when I found out for the first time that I'm required to also open a savings account. Not really a big deal and it really doesn't hurt, except having to put in $100 just to open the checking account I needed. Then I find out that if I ever use my debit card as a debit card I would be charged a $1.50 surcharge, so I always needed to use credit. When I asked why, she laughed and said that's just the way it is.

I've had my money there for 2 months now. Tomorrow, I'm closing my accounts and transferring them to a local bank. So, while it's great that some credit unions work really well, not all do, so don't forget your local banks.

Pr0metheusMusic · 5 months

I'm joining chase tomorrow. They sent me a "free $200 if you deposit $100, and leave it in your account for 10 days." ad, where the only stipulation was that the account was $10/month (edit) and the account has to stay open for 6 months. Thanks for the $140, Chase!

johnnyhala · 5 months

Probably a rewards checking account, which are not as common as they used to be.

alwaysFumbles · 5 months

Me too. I got perhaps $5 in interest from BOA last year. Two weeks after switching to First Tech Credit Union, I received a "member's dividend" credit for $14.

shitshowmartinez · 5 months

I received a letter the other day that citibank is going to start charging $20/month for checking if you dont have $15,000 with them. I've had that account for 11 years, its just plain ridiculous. I will be switching as soon as I can.

broflcopter · 5 months

I actually made the reverse switch because my CU was giving me like .15% APY and found a bank that gives 1.01%.

ESqu13R · 5 months

Every day is bank transfer day.

1finefeline · 5 months

I'm a total noob when it comes to this whole credit union vs. bank thing. Anyone want to provide a simple explanation for the what and why of switching? I absorb information better when someone explains...I've not had a super ton of luck googling.

Im-postle-able · 5 months

Wow.. if that's an accurate statement, how did you not realize how badly you were getting screwed BEFORE the occupy movement made you accidently get a better account?

kainsavage · 5 months

The only thing I learned from this post is that no discussion of the following seemed to ever ensue:

Credit Unions versus big banks in terms of interest earned
Bank Transfer Day

I did learn something about Star Trek, however.

anonoman925 · 5 months

Is BECU FDIC?

jeffinfremont · 5 months

If Occupy Wall Street is going to coalesce around a unified message, this needs to be it.

OWS needs to be all about encouraging people to get out of the TBTF banks and into local institutions like credit unions. I know there there are hundreds of other issues that OWS is concerned about, but in terms of a short-term mission, this needs to be it.

They can begin measuring their success when Citibank, BoA, Wells Fargo, and Chase branches begin to close for lack of interest.

GrinningPariah · 5 months

You know you can only transfer your money once, right?

BafflerMeat · 5 months

I'm Canadian, and recently (well, May-ish) switched to TD at the suggestion of various family and coworkers because it's 'more convenient'. I've been charged from buttfuck and back for things I don't need, do or sign up for. I never even stopped doing business with the credit union. I'm sick of being broke because of all of these bullshit fees. Is it as big a deal to switch back, being Canadian and comparatively safe thanks to our 'Big Three' bank system?

imnotverycr8ive · 5 months

I couldn't agree more. I use Lake Michigan Credit Union (Western Michigan area) and I get 3% checking up to $15K. They refund up to $15 in ATM fees every month too, which if used, is the biggest savings.

aruss88 · 5 months

May I ask how much? I might transfer if its a substantial amount

ashishduh · 5 months

My CU pays .60% on standard MM savings, JSCFCU.

mrafaeldie12 · 5 months

I actually participate in credit union myself in brazil,its quite profitable,everyone wins.

[deleted] · 5 months

I'm doing it!...just as soon as I actually have money.

MaverickTTT · 5 months

Truth.

I started moving my money last month from Wells Fargo to a credit union. I had checking, savings, credit card, and an auto loan with Wells Fargo...tomorrow, I close the checking and savings (the final remaining accounts and finalize the migration.

Virtually everything Wells Fargo offered is available to me at my new CU. Sure, the CU website may not be as snazzy and the ATM's may not have as many cool features...but, the people are nice and helpful.

I only wish I had done this sooner.

[deleted] · 5 months

I'd love to join you, but as a self employed video editor in NYC, I can't seem to find a credit union who wants my business. They all insist that I have to be a government employee, ex military or work for some obscure company that I've never heard of.

Shame, looks like I'm sticking with bank of America.

update_in_progress · 5 months

So in the spirit of sticking it to the greedy, irresponsible big banks I too have been planning to switch out of BofA into a credit union (In a few paychecks I can finish paying off my BofA credit card).

However I really have come to depend on the "my portfolio" feature that BofA online banking has. It lets you automatically track, categorize, and analyze all of your income and expenses from any financial account (e.g. I have my capital one card on there as well). It's pretty awesome, helps me stay on top of my budget/finances.

Do you guys know of any non-big banks that have services like this?

Rhawk187 · 5 months

Sounds like you should have shopped around more beforehand.

TwistTurtle · 5 months

How successful was Bank Transfer Day, by the way? can anyone summarise it for me? Preferably in easy to digest graph form since I'm not that good at understanding money issues... I know the first day damages were pretty notable but beyond that I've not heard much.

smoondog · 5 months

I don't get it. I bank at chase. I have retirement (tax deferred and investment accounts) through fidelity. i don't keep a savings account, i generally put extra money in fidelity.

I put all of my expenses through my chase cc, which gives me money back. I make probably $1-2k/yr on that. I pay off full every month, so no fees. So, in the end, chase pays me a nontrivial amount every year and charges me almost nothing. I don't really get this complaint, i use only big banks and they are pretty good to me, i think. (i just work at a university, and not wealthy by any means)

MonsterIt · 5 months

What interest? I've never heard of any interest.

wutsgudhomz · 5 months

Hi. I am 18, I live in Canada and am thinking of switching my funds from a bank to a credit union. Whats the difference between the two? Pros and Cons... I don't understand how banks work, I just started using the same bank my dad has.

Hewkii · 5 months

If you fellow redditors have to stay at a Bank go USAA, even if you're not part of the military/family of military you can still open a savings & checking account with them, and they basically act like a credit union anyway. it's great.

mambypambyland · 5 months

The stupid in this thread is astounding...but then again this is reddit.

sweYoda · 5 months

You can't earn money by saving it in the bank. At the very best your could get as much money as high the inflation is.

ilikewc3 · 5 months

If we do the math on this we see that there is no way that this is true... to do some easy math lets say op has 100 bucks at wellsfargo for 8 years with 1% interest. to match that in 1 month op's credit union would have to be paying him 8% per MONTH which is kind of outrageous yea?

kickbackandenjoi · 5 months

BRAVO!

zero20 · 5 months

My mom is a single mother. She has worked at a bank for 35 years, since she was 18. She has raised me in a house she couldnt afford and sent me to a university that was out of her price range. I can't turn on this bank.

nepidae · 5 months

remember remember the 5th of the month

PizzaGood · 5 months

And I make 4x more at my on-line bank (Ally) than I can at the best local credit union. Both are better than brick-and-mortar banks though.

I have had a credit union account for about 25 years now, and it's our family's primary, but I move my savings into the online bank for the better interest and honestly, just as good service and better rates on everything. If it weren't for trying to support a local credit union by giving them our business, I'd just use the online bank exclusively. Using the local CU is basically charity.

Though I agree, any credit union is better than most banks. An old sock under a mattress is better than some banks.

angreesloth · 5 months

I'm not here to be the negative nellie, but my credit union hasn't done shit for me. They still charge me for using my pin number, which was explicitly stated on my agreement would not happen. They have one office that is out of the way, and the only reason I'm with them is because they were the only people that would even accept the car loan, which btw had a cosigner with credit in the top percent of the nation. Not to mention I was told there was no way I was going to pay over 200, but I am every month (although that might be the dealer's fault, they managed to tack on about 2k extra worth of crap and because I thought my parents actually know things, I get to pay extra.) I know banks suck, but that doesn't mean credit unions are the god send everyone seems to think they are. If everyone switches to a credit union, they will eventually become just as corrupt as banks

TL;DR I'm just as shafted by a credit union as a bank, don't act like they're the greatest thing since sliced bread just because you were getting bent over by your bank.

evrydayiderp · 5 months

Are all credit unions basically the same or are there some that are better than others? Also, if i'm a student can I still get a student loan from a credit union?

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