Bank vs credit union and which one

[msmama]

DH and I are divorcing.

We've done all our banking through USAA and while I could stay there, I'm wondering if a local bank would be better.

Locally, we have Bank of America, HSBC, Capital One and Citibank, plus several smaller local(ish) banks.

How do I tell a good bank from a bad bank? What kinds of things should I look for.

I like the BoA idea that they round up the change for the savings account, but I've heard other bad things about them.

The greatest thing about USAA was when I was buying my car, USAA basically did ALL the work for me - called around to find the best deal and everything (not that I'm in need of another car, but the service can't be beat).

Anybody have any insight? (And I'll apologize in advance for all of my upcoming questions - the budget is certainly changing).

 

[Judique]

DH and I are divorcing.

We've done all our banking through USAA and while I could stay there, I'm wondering if a local bank would be better.

Locally, we have Bank of America, HSBC, Capital One and Citibank, plus several smaller local(ish) banks.

How do I tell a good bank from a bad bank? What kinds of things should I look for.

I like the BoA idea that they round up the change for the savings account, but I've heard other bad things about them.

The greatest thing about USAA was when I was buying my car, USAA basically did ALL the work for me - called around to find the best deal and everything (not that I'm in need of another car, but the service can't be beat).

Anybody have any insight? (And I'll apologize in advance for all of my upcoming questions - the budget is certainly changing).

Do not give up this account. Keep it and use the free services it provides. When things settle you may want to shop for other products, but meanwhile you should definitely stay with USAA, until you've had a chance to evaluate what your longterm needs are. I don't think you can easily get this account back later if you give it up now.

 

[Shelly F - Ohio]

One thing I can say about our credit union verses a bank is. Our credit union pays us interest monthly where as a bank only pays it quarterly. So you are gaining more interest on money at a credit union because the interest is being posted monthly. For example balance at the CU is $100.00 interest in Jan $1.00. So in Feb I am earning interest on $101.00 so at the end of Feb my interest earn is say $1.05

 

[mrsklamc]

Credit union, credit union, credit union.

How do you tell a bad bank? Mostly from the fact that's a bank.

 

[hpfan100]

I love my credit union!! been there for almost 12 years now I think and never had a problem. They have helped me with everything from investing to buying a car. They were even helpful when I had my SS# stolen. I highly recommend sticking with yours if you can.

 

[stacy2197]

I love my credit union. I've refinances twice with them. Once for free and once only cost 250. They gave me a loan for a new car when I was young and didn't have a lot of credit.

 

[sookie]

stay with USAA - they are one of the best. i'd much rather use a credit union on a regular basis than a bank. that being said, i use a credit union at a distance, and a bank that is here in town for most things. the bank - i never do any loans through them, NOTHING because the rates are worse. the credit union is awesome. the bank we bank at has awesome customer service though so at this time - they are really nice and do try to go out of their way to help you if you have an issue - so, i stick with them - and we've had an account for 10 years now, so i dont want to loose that history. however it is a smaller chain (ARVEST) and they are big on that.
DO NOT GO WITH BANK OF AMERICA! They are the devil! My husband had them before and they were awful. Hard to work with. Poor customer service. Run. Away!

 

[mommyof2princesses]

Stay with your credit union! Dh and I both have a different one, although since we moved back to his home state we are transfering it all to his credit union. Banks are just messy!

 

[Swimalie]

One thing I can say about our credit union verses a bank is. Our credit union pays us interest monthly where as a bank only pays it quarterly. So you are gaining more interest on money at a credit union because the interest is being posted monthly. For example balance at the CU is $100.00 interest in Jan $1.00. So in Feb I am earning interest on $101.00 so at the end of Feb my interest earn is say $1.05

I would stay with USAA as well.

Also, our banks all give us interest monthly and calculate it monthly.So not all banks do the quarterly interest calculations.

 

[mrodgers]

A bank's goal is to make money. A credit union's goal is to work for you.

A bank charges me to have money in it. My credit union pays me.

 

[bettymae1121]

I've never banked with a CU so I can't comment about that. I can say that I banked with a small local bank (only one location) and while the customer service aspect of it was great, their services were limited and loan rates were all that great.

I moved away and switched to Chase a few years ago and have to say I've been very pleased with them so far. I've never had any issues with them and the few times I've been in my local branch, the customer service has been efficiant and friendly. I've never had to pay a fee to them for anything I've used (other than the anual fee for my Chase United Visa card, but the miles I earn are well worth the fee).

 

[n2mm]

I love my credit union too. I've had my account with them 30 years. I just retired and actually thought of getting a second account closer to home at a bank and the more I researched it, the more I didn't like things about each bank. Luckily my FCU participates in "shared credit unions" and I found a shared one close to my home, so I'm happy. I like that they don't nickel and dime me!

 

[JB2K]

DH and I are divorcing.

We've done all our banking through USAA and while I could stay there, I'm wondering if a local bank would be better.

Locally, we have Bank of America, HSBC, Capital One and Citibank, plus several smaller local(ish) banks.

How do I tell a good bank from a bad bank? What kinds of things should I look for.

I like the BoA idea that they round up the change for the savings account, but I've heard other bad things about them.

The greatest thing about USAA was when I was buying my car, USAA basically did ALL the work for me - called around to find the best deal and everything (not that I'm in need of another car, but the service can't be beat).

Anybody have any insight? (And I'll apologize in advance for all of my upcoming questions - the budget is certainly changing).

Even though you are about to become a "former spouse", you are still eligible for full USAA membership that is unattached to your ex' membership.

Same goes for your kids.

Big banks of all stripes are getting a bad rep -- and there are reasons too numerous to mention, here. In short, USAA, unlike BofA, Citi, and the rest has not asked for a dime of bailout money from the taxpayers (and then, in the next turn, hosing those same taxpayers, who are also bank customers, in the form of increased fees, etc.).

As for small banks - too many of them are folding (being seized by the FDIC and those accounts sold to larger banks) for me to recommend any of them, at this time. While Credit Unions as a whole are solid, they may or may not fit your financial needs. Despite what you may hear on the Budget Board, no two of the Credit Unions mentioned by the previous posters are exactly the same.

My advice - stick with USAA.

For those of you who don't know, USAA is not a credit union, but a Federal Savings Bank. While only certain groups of people can do insurance and other lines of business through USAA, their bank is open to anyone who meets the usual (Patriot Act) criteria to open a bank account in the U.S.