Bank or credit union?

[pinkytoe]

Which do you prefer for everyday checking and savings accounts? Currently with a corporate bank but thinking about moving some monies to a local credit union that is offering $200 to open a new account.

[happystuff]

I have belonged to a credit union since the 1990's. When I joined way back when, there was a branch in the building where I worked. Have left that job long ago and then moving, I still use the credit union, but also have a basic checking account at a local bank. This is mainly for things like depositing checks or getting quick cash with no fees.

[dado potato]

Some banks excel. Some credit unions excel. In any particular locality one can assess the competition and bank with the institution where one's own needs will be served most efficiently.

I am impressed with the visionary service of the Assiniboine Credit Union in Winnipeg, Manitoba, Canada. (If I lived there, no doubt they would have my business.)

Where I do live, the local credit union is ho-hum, not highly competitive on services, fees, or interest rates. The credit union has schmaltz about community, but I see the same schmaltz at the one FDIC bank with a branch in this small town, where there are plates of home-baked chocolate chip cookies to be had in the lobby. The local community bank and the credit union both publicize their donations to worthy local causes. While those donations are laudable, I entrust most of my business to a well-managed regional bank. In 2006 this bank's continuous improvement program was called "Five Star Service Guaranteed". Mergers and name changes notwithstanding, I have been a customer of the same bank for more than 20 years. I hope the bank appreciates that relationship... I know I do.

[ApatheticNoMore]

checking with a big bank, but won't do enough that I am questioning that decision. Quarters rationed to the hilt now - only one roll (other banks don't ration them so hard). Won't cash government bonds just direct me to a government website (many big banks do) etc. It's like why am I even with big bank if they don't do anything.

Savings I tend to do online savings accounts as otherwise there is no interest to be found anywhere (and barely there either).

[pinkytoe]

This particular credit union is regional and has a stellar reputation; their rates look competitive. It is mostly the no strings $200 I'd like:)

[sweetana3]

We have been members of two credit unions since the mid 70s. In fact, we held the first mortgage one of them ever issued. Have always gotten stellar personal service. The Trust Dept. assisted us with setting up a complex beneficiary IRA and answering all our questions. The locations are convenient and if the customer rep. does not know the answer, they get it right away.

[ToomuchStuff]

Our business, banks with a small local bank, that is ran by a man who is supposed to be the basis of Milton Drisdale's character, according to Henning's family. We've done business with them long enough, that prior to the other owner passing, I had heard mention that he only had a couple more years until he retires/sells the bank. I could see us moving to a regional bank that we have known the owners of for longer then I have been working. If not, there is another bank that a former employee, is married to one of the vice presidents of.
On the other hand, personally, I started out with S&L's, years back (as a kid), where it would take me a REALLY LONG TIME to meet the minimum's of banks, to not be fee'd to death. (they would basically nickel and dime me into nothing) When they went away, it was mattress for a while.
Close to the time I graduated, I had extended family, on both sides, that belonged to a local teachers credit union. I technically wasn't close enough family to be a member, however besides them, there were other members that pushed for me to be allowed. That credit union eventually became the regional (non teacher) one I use now.
If I didn't use them, I would have probably gone with either a small local one I had heard some good things about, or Community America, since I was friends with the former president and a couple degree's separated from the current one.
Relative that worked for the Drisdale dude, works for Mazzuma, but that was more of a drive then where I lived.
I generally prefer a credit union for personal use, I don't know how well they work for business use.

[Yppej]

If you have transactions involving foreign funds you need a bank.

[jp1]

People still use checks? And bank tellers? It’s been at least a year since I have paid anyone with a check and a decade since I set foot in a financial institution.

[iris lilies]

People still use checks? And bank tellers? It’s been at least a year since I have paid anyone with a check and a decade since I set foot in a financial institution.
I don’t understand how people function without checks.

I just recently sent $1,000 to someone, family friend. I do not have Venmo. How would you convey money like that?

I am treasurer for a small organization and we pay instructor fees and building fees.How do you pay people in that situation?

I prefer to send charitable donations via check for some organizations because the Facebook or G Fund Me interface takes a measurable cut. How do you get around that?

[catherine]

People still use checks? And bank tellers? It’s been at least a year since I have paid anyone with a check and a decade since I set foot in a financial institution.

I know. It killed me to have to order new checks recently, but my propane guy and my storage unit guy don't take any alternative payments. I guess I could do cash, but how cumbersome is that??

As far as banks, go, I would go with a credit union in general, but I'm one of those old people who has been with their bank for 30 years. I just can't see upsetting the apple cart, but I much prefer the idea of credit unions.

[iris lilies]

More reasons for checks:

…My dentist gives us a discount of 10% if we pay cash or check. I do not normally carry around $125 for the dental cleaning. I guess I COULD get cash, but that would require me to actually go to a bank.which I don’t do.

I have forgotten how to use the ATM. Last time I used it was in 2017 when we went to Europe. I get about $20 cash from DH every few weeks. 85% of my personal spending is on a credit card, 12% by check, 3% by cash.

…Everything is run through our checkbook and that makes it easy for me to compile outgoing money.

…This isn’t really a requirement for checks, but—we have a separate banking account in
Hermann for expenses on the Hermann house that we pay by check. We wanted a local bank for paying the contractor and his Hermann supplier.I do not know how to pay our contractor other than by check. He is an old guy like us, so who knows if he has digital vendor accounts.

[herbgeek]

I still use checks, though my use is significantly down, mostly just occasional bills - like my real estate taxes due twice a year. They charge a premium for using a credit card, and they already get enough of my money so a check it is. There is also one credit card that I've tried to open an online account for, but have been unsuccessful at every attempt. They use questions from a financial/credit database, and I apparently fail them. So they get a check. Most purchases go through my Amazon credit card, and I do a bank transfer to pay them.

I do have paypal for vendors and venmo for the under-40 crowd in my family for other money transfers.

[happystuff]

I do checks, but very minimally. Mainly property taxes and some donation where the online payment methods are too confusing and/or they keep my cc info.

[sweetana3]

When paying for a retreat to an individual, I have to use a check. When making a few donations, I use a check. More personal to write it out and hand it to them. Some guild occasions like our garage sale or ticket purchases require cash or check. Until recently we got a dividend check in paper form. We collect them and take them to our local branch to process. Mom also gets a few gift checks and needs them to go into her account.

We also use a teller to get rolls of quarters for Mom to use in laundry. Our local stores will not "sell" them anymore. We use a teller to process some of our transfers that husband cannot do online. Usually from a beneficiary IRA and they require some darn signature.

[jp1]

I assume that when I use my credit union's online bill pay that some of the time they actually send checks. They probably do a wire transfer to the mega-corp bank that I have a credit card with and to AT&T, etc, but when we paid rent I assume our landlord received a check from the credit union, drawn off my savings account. I like paying my bills this way because it's free, as opposed to the $35 that I spent for 100 checks plus postage to mail payments. For the handyman that we used for some work in our yard and fixing the railing on our bedroom balcony I paid with Venmo. For my dentist, eye doc and any other medical provider I use the debit cards associated with my HSA and FSA. I pay our housekeeper in cash. There's an ATM for a credit union that is part of a big credit union network at Safeway so getting cash is easy and free. For pretty much everything else I use a credit card.

[JaneV2.0]

I can't recall the last time I used a check, and I'm afraid my bank card has gone dormant, because I haven't used it since the pandemic began. I pay all my bills through Bill Pay at my CREDIT UNION.

I have a burning question: I use PayPal often for on-line purchases; what's the advantage of VenMo (which I also have) over PP? I googled it, and it seems there isn't much difference.

[catherine]

I have a burning question: I use PayPal often for on-line purchases; what's the advantage of VenMo (which I also have) over PP? I googled it, and it seems there isn't much difference.

I don't see a difference either--but as herbgeek said, it's the platform of choice for younger people. Venmo has weird features, like you can opt to see what other people Venmo'd and you can share what you Venmo'd but I really can't see any benefit to that, other than that it's one more way that social media intrudes on what I consider private. I was shocked the first time I used Venmo, and I saw a feed that said things like, "Joe Schmo just paid Valerie of BasketsRUs $50" Why, why, why do people WANT their friends to see their purchases?

[ApatheticNoMore]

There is a way to pay rent online, but it's easier to just write a check and deposit it in the slot on premises. I also paid a doctor's bill by check recently. I've seldom done FSA or HSA, the FSA is way more hassle than it's worth (it was better in the old days when you could at least spend the unspent balance on otc first aid supplies and so on, but now you just lose it - more trouble than it's worth). And I've never wanted to gamble with a high deductible health plan if I didn't have to so have not used HSAs.

And good luck getting quarters for laundry without seeing a teller.

[jp1]

I don’t know that there’s much actual difference functionally between Venmo and PayPal but the people I know seem to use Venmo more as a way to transfer money person to person for things that previously they used cash for such as when splitting the bill in a restaurant. Maybe I haven’t been paying attention but I’ve never seen a ‘pay with Venmo’ button on a web site.

[Teacher Terry]

I use Zelle for younger people that have it. I also got paid that way for some items at my garage sale. I use online bill pay through my bank. I still need checks for my groomer and chiropractor who only take checks or cash.

[NewGig]

We use online payments and checks, as convenient. Credit union for us, no banks. The local bank changed hands/names about 4 times in 10 years. The credit union has the same name it's had for the past 25 years, although the company it was originally affiliated with is long gone.

[catherine]

I don’t know that there’s much actual difference functionally between Venmo and PayPal but the people I know seem to use Venmo more as a way to transfer money person to person for things that previously they used cash for such as when splitting the bill in a restaurant. Maybe I haven’t been paying attention but I’ve never seen a ‘pay with Venmo’ button on a web site.

Yes, my picker/reseller SIL uses Venmo constantly. He sets up tents at flea markets and stuff and sells customized thrift clothing, and he hardly ever gets cash from people. It's all digital transactions.

And you're right, there's no "pay with Venmo" on the computer. Believe me, being "old," I've looked.

[rosarugosa]

ANM: I ruefully think of you whenever I have an abundance of quarters. I recently was at the library using their copier/printer, and I had put in too much money, and I got a bunch of quarters for change, and I felt so guilty! I went to the desk and asked the librarian if she wanted me to swap the quarters for bills due to the quarter shortage, and she looked at me like I was crazy and said "no thanks."
We use a local savings bank for checking. We've been with them for many years and no complaints. I use online bill pay even for things like property taxes and our oil company, and the bank sends them a check, like JP's credit union does. I use checks on occasion, but a book of checks lasts me a long, long time these days. I also do online bill pay for my mother's bills now. We use an online bank for savings.

[jp1]

The last time I bought checks was about 2 years ago. My old checks had my NYC address on them. I hadn't lived there since 2004. And since we moved last September my current checks have our San Francisco apartment address on them. I expect these checks will last the rest of my life. I don't care that the address is outdated.

Back to the OP's question, I love my credit union. I've been a member since I was 6 or 7 years old. The current interest rate on savings accounts is sucky, but so is everyone's. Customer service is great. The network of atm's they belong to is broad. And the customer service rep amused me when I was arranging the wire transfers for the down payment on our house last year. She made up security questions based on my total account info. Things like "what year did you become a member?" She accepted "sometime in the early/mid 70's. I was a little kid at the time." And "Is the original credit union office still open?" My answer: "No. Building 444 got torn down shortly after the air force base it was on got decommissioned. Dad had retired by then so I have no idea where the AFAFC is located now."

I do also have bank accounts with a major bank because their atm network includes most 7-11's and also a major web only bank that has an easy to use, and free, system of transferring money both in and out online so I use it to shuffle money between all of my financial accounts.