Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Credit Unions

en.wikipedia.org

Post reply on HN
Print view View original

51–60 of 64 posts

Re: Credit Unions

#51

Post by landemva »

nucleardog wrote: post #40
Der_Einzige wrote: post #38

It appears to me that for the general person, credit unions are strictly superior to regular banks. My credit union has consistently offered me better rates, less BS, and less fees that any other banks. The fact that they are non-profit cooperative institutions also makes them significantly more desirable from a political standpoint. Seems to be the "progressive" alternative to regular banking.

Mine does not offer better investment/loan rates, but they do definitely offer better services and lower fees. My wife banks with one of the big banks--pretty much everything she tries to do is a hassle. Often that involves long hold times only to be told she needs to travel into town to a branch to get something done or resolved. That's, more than once, been the point where they just outright refuse to actually help…

Many CUs participate in 'shared branches' which allow the member to walk in to other CUs and bank with their home CU. Maybe there is a participating CU near you.

This lookup tool indicates there are even international locations.

https://co-opcreditunions.org/locator

Re: Credit Unions

#52

Post by toast0 »

Apocryphon wrote: post #44
toast0 wrote: post #42

Earlier quoted context omitted.

> I know about FDIC. I understand the rules. My bank has a great explainer on their website about the coverage. I don't know anything about NCUA and I don't care to learn, The rules are pretty much the same. A credit union is likely to have the same kind of explainer that tells you the same stuff, except there's magic words like 'share account' instead of 'savings account' and 'member' instead of 'account holder'. An…

They're essentially non-profit banks, which is a significant difference.

It's certainly a difference, but then it's like a mutual bank that's actually mutual. Given that there are 6,940 FDIC institutions and 6,815 U.S. credit unions (according to another poster), one should choose from the commodity that is banking institutions based on the services of the bank or credit union. I bank with two credit unions that are former aerospace employee credit unions; one of them gets most of my business because they offer a savings rate of 2.1%, the other one offers 3.0% on the first $500, and 0.5% on the rest. The second one has branches (or at least something that looks and smells like a branch, but doesn't touch cash), which was helpful during the pandemic when I couldn't get in for shared branching.

I really should move my savings to a commercial bank, where I can get 3.6%, but I haven't been inspired enough yet. Sure, the commercial bank may be making a profit, but they're giving their depositors more, and that's really what I'm looking for in a banking relationship.

Re: Credit Unions

#53

Post by landemva »

starkparker wrote: post #50

Is there a reason why startups or VCs burned by SVB wouldn't go in on forming a credit union for a successor? Even if it's not safer, but for the access and transparency of being more than customers?

Why bother when they have political muscle and financial size such that everyone is forced to pay for their now-unlimited FDIC limits?

Re: Credit Unions

#54

Post by latchkey »

toast0 wrote: post #52
Apocryphon wrote: post #44

Earlier quoted context omitted.

They're essentially non-profit banks, which is a significant difference.

It's certainly a difference, but then it's like a mutual bank that's actually mutual. Given that there are 6,940 FDIC institutions and 6,815 U.S. credit unions (according to another poster), one should choose from the commodity that is banking institutions based on the services of the bank or credit union. I bank with two credit unions that are former aerospace employee credit unions; one of them gets most of my busi…

Why not something like Ally?

4.75% on their "no penalty cd", you can pull out after 6 days.

Re: Credit Unions

#55

Post by toast0 »

latchkey wrote: post #54
toast0 wrote: post #52

Earlier quoted context omitted.

It's certainly a difference, but then it's like a mutual bank that's actually mutual. Given that there are 6,940 FDIC institutions and 6,815 U.S. credit unions (according to another poster), one should choose from the commodity that is banking institutions based on the services of the bank or credit union. I bank with two credit unions that are former aerospace employee credit unions; one of them gets most of my busi…

Why not something like Ally? 4.75% on their "no penalty cd", you can pull out after 6 days.

3.6% was the Ally savings rate. I didn't check their CD rates.

Re: Credit Unions

#56

Post by Delfino »

Der_Einzige wrote: post #38

It appears to me that for the general person, credit unions are strictly superior to regular banks. My credit union has consistently offered me better rates, less BS, and less fees that any other banks. The fact that they are non-profit cooperative institutions also makes them significantly more desirable from a political standpoint. Seems to be the "progressive" alternative to regular banking.

I've used Credit Unions my whole adult life and agree with you. Though I am now in a position that they don't work as well for me: living abroad. I've run into lots of small issues over the last few years so I caved and opened an account at a commercial bank for the first time to help decrease the friction.

Re: Credit Unions

#57

Post by NoZebra120vClip »

nucleardog wrote: post #40
Der_Einzige wrote: post #38

It appears to me that for the general person, credit unions are strictly superior to regular banks. My credit union has consistently offered me better rates, less BS, and less fees that any other banks. The fact that they are non-profit cooperative institutions also makes them significantly more desirable from a political standpoint. Seems to be the "progressive" alternative to regular banking.

Mine does not offer better investment/loan rates, but they do definitely offer better services and lower fees. My wife banks with one of the big banks--pretty much everything she tries to do is a hassle. Often that involves long hold times only to be told she needs to travel into town to a branch to get something done or resolved. That's, more than once, been the point where they just outright refuse to actually help…

My anecdata: the reverse is true for me. I have a bank and a CU. My bank is responsive, friendly and efficient. Fewer fees, better returns, more products and better suited for someone with my finances.

CU is inept, long hold/queue times. Every transaction is a comedy of errors. They messed up my SDB 3 times. Their OLB web app once leaked private customer information about 2-3 other members into my inbox.

I aimed to totally ditch CU, but once I got the bank all set up, realized I absolutely couldn't, so now I juggle both.

Re: Credit Unions

#59

Post by cafard »

caboteria wrote: post #29

As anyone who was living in Rhode Island around 1990 can tell you, credit unions are no more or less safe than banks. It's more about ensuring proper oversight in either case. https://en.wikipedia.org/wiki/Rhode_Island_banking_crisis

Credit unions failed all over the US in the late 1980s. In general it was badly managed loans, but there were cases of self-dealing. The then governor of Maryland, Harry Hughes, was doomed when it came out that he had a year or two earlier received a report predicting exactly what then happened, but had taken no steps to prevent the crisis. He lost in the Democratic primary.

Re: Credit Unions

#60

Post by latchkey »

toast0 wrote: post #55
latchkey wrote: post #54

Earlier quoted context omitted.

Why not something like Ally? 4.75% on their "no penalty cd", you can pull out after 6 days.

3.6% was the Ally savings rate. I didn't check their CD rates.

Hilariously on the phone with them for the last hour moving an existing NPCD to the higher rate. Their system is so broken it won't allow me to do this online.

Oh and now login is broken.

Post reply on HN