Credit Unions vs. Banks ~ Who loves you baby?

Big banks are not for you. Yes, you. They are constantly adding and increasing fees in order to raise profits and satisfy their stockholders. They don't care about your money- your checking account (fees for bounced checks), your savings account (fees for falling below the account balance required), inactivity fees, paying for checks... the list is endless really. The bottom line is that big banks and small banks too, need the fees. They love the fees. They will make you feel ill-equipped and worse if you incur fees. Why? In order to make money off of you.

Credit Cards owned by banks are riddled with charges. Just read your bill! Even if you haven't shopped for awhile, they get you for that too. Why? To make money off of you.

Interest Rates and Car Loans owned by banks are almost always higher. Even the terms can be tough as compared to what a credit union might offer.

Credit Unions - the smart choice

So what is a credit union? Well, first off when you join a credit union (and anyone can!), you become part owner. Credit Unions are owned by the people, not stock holders, therefore there is no pressure to sell services or make a profit. It is your money and my money.

Credit Unions do not charge fees- anywhere. Not on credit cards, not for insufficient funds, not for small savings accounts. Why? Because they're not bound to increase profits due to having investors in their stock. Credit Unions are owned by the share holders, the account holders. Remember, that's you and me.

What if I do screw up, how does the credit union handle an overdraft?

From personal experience I can say that the credit union has scruples. They always give me the opportunity to fix the problem before they take action. The action? Do I get fined for bouncing three checks (the domino effect of not having sufficient funds)- no.

What they do is create a PSL or Personal Service Loan. Like a line of credit. Yes, there is an interest fee for the amount I owe. But, all my checks cleared (they NEVER bounce); no one else knows that I suck at addition or subtraction; and I can either pay the loan off immediately by depositing the amount needed or pay it off over time. It's okay. They don't charge me- they take care of me!

I hate to think of the scenerio If this was a big bank, I might incur a fee for each check bounced, let's say $6 bucks. Times that by 3 checks - in the meantime I am totally unaware that they've even bounced! So, now I'm up to $18 bucks and counting if I don't fix this mess. Plus, the bills I thought I paid are not even paid!! E-gads! Now I'm really getting in deep... hence the saga of big banks.

The classic movie, It's a Wonderful Life, is a great example of the mind-set of Credit Unions. They actually care about each owner- that's you! No one wants to see you fail or get behind or become a public embarrassment. This segment below shows what happens when the bank shuts its doors- and how George Bailey tries valiantly to get his credit union members to stick together.

How many Credit Unions had to be bailed out this past year? Answer: zero.

How many big banks had to be bailed out? Answer: Innumerous! Many banks were either taken over or went under, which in turn costs the tax payer money.  Don't we already pay enough taxes without our banks adding to the problem? 

In conclusion...

Dare I say that only a fool would belong to a monster bank?  Yes, I think I will end it on that.  Now go look up your local credit union and start saving today.