Switching From Big Banks to Credit Unions

by Ryan

After the big bank fiasco and credit crunch we’ve seen over the past few years there’s been a movement for customers to leave big banks and partake in their local communities via credit unions. Credit unions offer a ton of unique advantages, but they are limited in the range and breadth of services. Using a big bank obviously brings more freedom because of a larger network, but are the benefits of a big bank really worth it?

According to one movement, the Move your money project you should strongly consider moving your funds from a big bank into a local credit union.

One of the main questions that comes up, of course, is why should I move my money from a big bank to a credit union?

According to their site there are three main reasons which include:

1) Take away power from the “Too Big To Fail” Wall Street Banks
2) Get a better deal on savings or checking accounts and more personal service
3) Take pride in investing in your own local community and spurring job growth

I completely understand the voice of movement and find their parody between the current situation and “It’s a Wonderful Life” (see their homepage) to be pretty interesting. If you’re if you’re “mad as hell” at the big banks you could follow the footsteps of over 9% of Americans who have switched from big banks to credit unions in protest.

Have you switched any of your funds into a credit union from one of the banks that were / are too big to fail?

Which do you prefer, credit unions or big banks?

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{ 7 comments… read them below or add one }

Kari January 24, 2011 at 8:23 pm

Funny thing that I come across your blog about this………….. We’ve been discussing possibly transferring for months!!! 🙂

How about your opinion? Which do you prefer?

Melyssa January 24, 2011 at 11:32 pm

Several years ago we decided to run away from big banks and their fees for everything, and work solely with our credit union. I love the fact that it’s small and that I know the people in my branch, and that they know me. There is rarely a line, so I’m in and out in a jiffy. I actually think it’s quite nice to speak to a person instead of befriending the ATM machine. And although I try to avoid loans, they usually have lower rates.
Melyssa´s last blog post ..She Got Turned Off When He Paid With A Coupon

Delena Silverfox@Coupon Codes January 25, 2011 at 11:08 pm

I broke up with Chase Bank last summer and joined my local Unitus Credit Union. It was because of a bad, bad story involving over $1600 Chase mishandled, lied to me about, and refused to remedy their mistake.

I have been ecstatic with Unitus and wish I’d made the switch back when Chase had eaten up Washington Mutual!

Delena Silverfox@Coupon Codes´s last blog post ..iContact Coupon Code

Victor January 26, 2011 at 9:50 am

Its funny, I have been with a credit union for all my life and as a result I am a little spoiled. I never realized how much big banks nickel and dime you, until I opened a business account at a big-box bank. They charge for EVERYTHING, including getting a copy of your past records. Whereas my credit union will bend over backwards to help me out.

I suppose choosing the right credit union is also important, but I have since opened another business account with a local credit union and plan to move away from the big bank.
Victor´s last blog post ..New Patient Teeth Whitening for Only 50!

Little House January 26, 2011 at 3:29 pm

This year is the year the “big banks” are supposedly increasing their banking fees (I just wrote an article on WiseBread about this.) I’ve been able to waive most of my bank fees through a few different avenues, but if my banks begins increasing fees, I might start looking at local credit unions. I don’t like bank fees!
Little House´s last blog post ..Will My Pension Run Out By 71

ElleX February 21, 2011 at 12:31 pm

My main accounts are with my hometown state credit union (CU) and I love it! I do have an account with Wachovia but it’s only because I live in a bordering state and about 1 1/2 hours away from my CU. I do like that Wachovia is in most states on the Eastern seaboard so I have access to funds without ATM fees when I travel up and down the East Coast but I don’t keep a bulk of my funds in the account – just enough to avoid fees.

Alan March 30, 2011 at 12:25 pm

We use a big bank ( ING Direct) for our savings accounts, because we like the sub-accounts and the bill pay. However we have our mortgage through a credit union. We checked ING out but they couldn’t compete at the time.
Alan´s last blog post ..Ways to save money – tips on saving money

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