Are credit unions better than big banks?

Only 27% of Americans have confidence in banks, but what are your other options? Check out the pros and cons of keeping your money with your big bank.

Two Cents on Twitter: @twocentspbs

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Two Cents was created by Katie Graham, Andrew Matthews, Philip Olson CFP® and Julia Lorenz-Olson and is brought to you by PBS Digital Studios. We love dropping some knowledge on all things personal finance and helping you make better money decisions.

Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson
Directors: Katie Graham & Andrew Matthews
Written by: Philip Olson and Andrew Matthews
Produced by: Katie Graham & Amanda Fox
Images by: Shutterstock
Music by: APM

Sources:

[deloreanman]

I left Bank of America in 2006 when they charged me a $37 fee on a 7¢ overdraft. I went to a credit union and haven't looked back since.

[alexsteven.m]

Recessions are part of the economic cycle, all you can do is make sure you're prepared and plan accordingly. I graduated into a recession (2009). My 1st job after college was aerial acrobat on cruise ships. Today I'm a VP at a global company, own 3 rental properties, invest in stocks and biz, built my own business, and have my net worth increase by $500k in the last 4 years.

[OneCheapEric]

Thanks! I took your two cents and put them in a credit union.

[AnnaOllsson]

The U.S. economy relies on ongoing credit and debt generation for sustenance. The Federal Reserve is expected to increase the money supply, leading to further debt accumulation for the average American. Meanwhile, foreign nations continue to desire the U.S. dollar, despite their own economies facing significant challenges, some even worse than that of the U.S. This situation raises concerns about who will ultimately bear the consequences of these economic dynamics.

[etak]

I switched from a bank to a credit union after the bank decided that they would charge a fee for any account that contained less than $300. I was struggling at the time being under employed so that was definitely not possible for me. my credit union requires that you live, work or worship in the county they're based in but offers interest on my checking account and only requires I maintain a $5 balance in the combined savings account. I get access to far more atms with no fees than before and the app easily allows me to transfer funds between my accounts 24/7.

[popinmo]

Man I wish school would teach us this stuff

[ahorse]

Banks use you. You should also use them.

Whenever you can get a sign up bonus, take it! Whenever you can pay off credit at a cheaper rate, take it!

Then ditch those suckers and put your money back into a credit union, where you are rewarded for being there and own a piece of the pie.

Rinse and repeat.

[snicholelx]

I just switched to a credit union! Chase was robbing me blind

[agntsmith]

I've been a member of a credit union since I was 16. It has cost me all of $5 to open my account and I've enjoyed extremely low fees with moderate interest of .1% on my checking and savings account, great service, online banking, and a 1% cost to internal ATM use. I had a single checking account with Bank Of America which I closed when they changed their account policy and stated they were going to charge me $25 dollars a year just to keep open.
I can't recommend Credit Unions enough!

[aonoymousandy]

I switched from wells Fargo (lying and corrupt bank) to a local credit union in 2018 and its been one of the best financial moves so far. they have a great app, online banking, big ATM network with no fee, offer many loans, and every month they give me a dividend on my deposits

[millertime]

The real question is: Are bigger mustaches better than smaller ones?

[WayneFergerstrom]

If your bank has a stock symbol, you are not their customer, you are their product.

[robertnoe]

Employees attitudes alone is reason enough for me to stick with credit union.

[callalilly]

Credit union member since I was 19. At 40 it's my longest and healthiest relationship. Opened an account for my 8 year old, which she says she will use to buy a home😊

[RangerRuby]

I didn't even know that online and local banks were a thing! It is so amazing how much new information you can learn in 5 minutes! I love all of these videos and I hope your channel spreads this cool and necessary info for a long time to come!

[naturalsouthernbelle]

I work for chase bank and my husband and I still choose a local bank to get our mortgage, auto, and credit cards with. Even the employee benefits couldn’t be matched with our local bank.

[sarahk]

I left Bank of America in 2015 because they were charging me $12/mo because I didn’t have a certain amount in my account. I went with a credit union that has no checking fees and gives a great return on savings accounts. I love my credit union and I’m never going back!

[elisedeloatch]

RAUL I AM SO GRATEFUL, MY SCORE JUST MOVED TO 820 FROM 450

[ianparks]

When’s the last time your bank raised your card limit with a phone call or have you 500 dollars worth of credit free because you were stranded? Never

Credit Unions are lit

[cxarli]

You don’t have to put all your eggs in one basket. If you think you might need the international scope of a megabank, keep some money there. But put most of it in a community bank or credit union.