Banks vs Credit Unions: What's The Difference And Better Choice? | NerdWallet

The most common options for money storage are banks and credit unions. Nikita Turk breaks down the similarities and differences between the two, helping you find the best fit for you.

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Chapters:
0:00 - Intro
0:30 - Similarities Between Banks and Credit Unions
0:50 - How Banks Work: Interest, FDIC Insurance, and More
4:04 - How Credit Unions Work: Benefits, Purpose, NCUA Insured, and More
6:05 - Credit Union Pros and Cons
6:23 - What Banks Offer
6:47 - What Credit Unions Offer
7:30 - 5 Factors When Choosing a Bank or Credit Union
8:26 - Conclusion

About Versus:
Versus is all about financial decisions and weighing your options. Our financially-savvy Nerds break down two similar product or services explaining why they are different and who they work well for. In the end, you will have an understanding of each option and what could work for you!

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Banks vs Credit Unions: What's The Difference And Better Choice? | NerdWallet

[unbiased]

Credit unions are the way to go!! That’s how you really invest and keep money within the community!

[blackspiderman]

Considering in 2008 the banks needed a bail out and credit unions did not. You already know the best choice

[nala]

Stop looking at banks. Stop depositing in banks.
Middle class
Americans are better off using Credit Unions.
Credit Unions are
owned by their depositors. Interest paid exceeds your local bank,
insured for the same amount as the bank.
Normally interest charged is lower than banks.
Use bank reward cards, carry no monthly balance.
Let corporations
and the rich fiancé your rewards.

[EllieHavanese]

I just used our local credit union when I started working because that's what my parents used.

[vietnamemperor]

Which is safer? Credit Unions! Look at the SVB and other banks failures and you already know the answer.

[usafshorts]

I use Navy Federal and I am very proud to be part of their community of members, Banks try to bleed me out.

[hand-eye]

For those who are wondering all of the cons she presented for credit unions are circumvented by finding an open / large / well serviced credit unions! The phone app for the larger credit unions are amazing and they offer all the services of a bank.... she dint really give the reality of credit unions they are a LIFE changer. And some of the BEST credit unions only need non profit membership to join!

[RRW]

My family got me into a CU and I don't have much experience with banks but it does seem nice that there are democratically-run organizations that you can use to store the money you need to (if you meet the requirements) in a world that is slowly requiring you more and more to store your money with a third party. I will say though that the biggest problem is how regional they are; if I moved to a different City I can find banks with offices across the country but most CU's seem to be limited to one metro area. This means transferring funds might have a stressful transition period from one CU to another.

[susiacord]

Thank you for this video. I would like to understand more about Credit Union dividends versus APR and APY and how they work together. I have noticed that some credit unions offer both an APR and dividend on the same account

[hollaholla]

This was extremely helpful Thanks for teaching me what higher education has not!

[Bamapride]

I have used many different banks and credit unions over the years. Definitely recommend using a cash back credit card as the payment on all the auto payments and this way you just need to link a new account to the credit card to pay off the bill to make changing main money receiving account easily changed. Credit unions have always offered myself a lot better apr on credit cards as even their highest apr is 18% whereas some cards have with major banks are now at 29 and 30%. The most i have ever kept in an account was 15k and at major bank, i was treated like I my business didn't matter to them whereas at credit union I have always been treated like a customer. I imagine if you have 100k or more the big banks may treat you a little better, idk. Anytime I look for a loan, I always check with credit union first bc their rates are usually lot lower than what I get offered from a bank.

[claudiafotiou]

Incredible information, as always!! Soooo, credit unions

[JeanPierreBarthelemy]

What a fantastic explanation. Thanks as always Nerd Wallet!

[djblendz]

This was such a great video! Thank you so much

[Arlene_witha_y]

Problem is my credit union gives hardly nothing of APY. Transferring my direct deposit to Sofi for the APY.

[mrmikeflo]

Online Banks like chime, and SOFI are the way to go now a days

[JudgedMentalMusic]

They spent just a min on credit unions and never once said anything negative about banks

[thelonestranger]

I couldn’t concentrate on what you were saying because of your beautiful everything!

[JudgedMentalMusic]

They really don’t want you to go to a credit union

[cobra]

I deal with 2 banks.
Santander bank. Checking / savings.

Middlesex savings. Checking only. This a local bank where I live.

2 Credit Unions.
DCU. Checking / savings.

Align credit union.
Checking / savings.