The low-down on credit unions versus banks
Written by Arielle Stevenson, Nov 22, 2011, 0 Comments
Besieged with higher fees from corporate banks, there has been a nationwide push to join local credit unions. Nov. 5 was national bank transfer day. According to the Credit Union National Association over 650,000 people joined credit unions since Sept. 29. That was the day Bank of America began charging a monthly $5 fee for debit cardholders, which they recently canceled after consumer outcry.
In the last few months, Bank of America, Chase and Wells Fargo began charging additional fees for ATM withdrawals from non-bank ATMs. Those fees are in addition to whatever fee is charged by the ATM itself. Bank specific ATMs are still free for members but count on spending $4 to $5 when grabbing cash at any general ATM.
Students, faculty, alumni and family members at USFSP have access to a credit union on campus. After the announcement of national bank transfer day, the USF Federal Credit Union launched the website www.bullsrunfrombankfees.com to inform students interested in switching their banking account. The website states that customers aren’t charged for monthly debit card use or checking, and there is no minimum balance to open an account.
The USF credit union charges a $1.50 fee to use non-credit union ATMs. But they say that their credit union system includes more approved ATMs than larger banks because they share ATM access with other credit unions in the area. All Suncoast Credit Union, Pinellas Credit Union, Florida Central Credit Union, GTE Credit Union and Grow Financial ATMs are available free of charge. In the downtown St. Petersburg area, there are 10 approved credit union ATMs, and one in the USFSP student lounge.
The basis for the switch from a bank to a local credit union may be less financial and more ideological. Credit unions historically served smaller populations with specific needs. Banks seek to offer convenience to a wide range of customers. Credit unions began in the United States in 1908, founded on a non-profit and cooperative philosophy.
According to The Washington Post, a survey by the National Association of Federal Credit Unions showed that credit unions saw a 54 percent increase in share growth. The same report also noted that 63 percent of credit unions saw membership increase during October.
[box_dark]More information about credit unions
Credit Union National Association: www.cuna.org
USF Federal Credit Union: www.bullsfrunfrombankfees.com
National Credit Union Administration: www.ncua.gov[/box_dark]
