From bank to credit union
Posted
Oct 22 2007, 12:29 PM
by
Karen Datko
Rating:
This post comes from J.D. Roth at partner blog Get Rich Slowly.
Banks have made a fortune off me. I had an account with a major U.S. bank for 18 years. I paid an $8 service charge every month. I paid to have my checks returned. I paid to use ATMs. Through my own stupidity, I paid lots of overdraft fees. As my money skills improved, the overdraft fees vanished, but the other fees -- and lousy service -- remained.
I finally got fed up. Last year, I switched my account to a local credit union. I had wanted to leave my bank for years, but hesitated because I thought it would be difficult. I was nervous about missing a payment on my home-equity loan, which was pulled automatically from my checking account. I was afraid I'd forget an outstanding check.
I needn't have worried. The transition was easy. People do this every day.
Here's how I finally made the switch:
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I withdrew several hundred dollars from my bank and used the money to open an account at the credit union.
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One by one I transferred automatic transactions to the new account. I began writing checks on the new account. I stopped using my old account completely.
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When I was sure everything was working as intended, I went in and spoke to a banker. I took all my money in cash and immediately deposited it into my credit union account.
In retrospect, I'm not sure why I waited so long to leave my bank. The credit union has no fees, other than a $1 fee if I overdraw my checking account and money in my savings account is used to cover the draft. The credit union's ATMs aren't as plentiful as the bank's ATMs, but this is very easy to plan around.
Even the credit union's online banking services are superior. That's right: A four-branch credit union has better online capabilities than one of the largest banks in the nation.
This simple change has saved me at least $96 a year in bank fees, and has actually made dealing with a financial institution a pleasant experience.
Other articles of interest at Get Rich Slowly:
“Ask the readers: best brick-and-mortar banks?”
“The Co-Op Network: Another reason to consider credit unions”
“Which online high-yield savings account is best?”
