Are credit unions better than big banks?
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Are credit unions better than big banks?


Ever notice how TV commercials for big banks
go really hard on the shmaltz? Loving families, cute babies, sweet old retired
people, micropigs on leashes. It’s almost as if they’re trying to distract
us from something… Oh, you mean like how in 2016 Wells Fargo
admitted to creating 3.5 million fake accounts for customers to collect extra fees, and charged
over 570,000 people for auto insurance they didn’t need, resulting in over 20,000 customers
going into defaults? And then there’s the now infamous practices
of Citibank, Lehman Bros, AIG and other Wall Street giants of bundling toxic “junk”
assets and repackaging them as AAA super-safe investments, which led to a near collapse
of the international money system that ordinary people are still hurting from. And most Americans feel that big banks are
rewarded rather than punished for risky and predatory behavior. Bank of America received tens of billions
in bail-out funds in 2009, only to turn around the very next year and pay $35 billion in
executive bonuses! Not surprisingly, our trust in these institutions
is low. A recent gallup poll showed that only 27%
of Americans have confidence in banks. But this is not a new phenomenon.14th-century
poet Dante placed money-lenders in the 7th circle of hell, below violent murderers and
blasphemers!. So, being suspicious of big banks is nothing
new, but what can you do? You’ve got to stash your cash somewhere,
and who can get through life without ever taking out a loan or using a credit card? Thankfully, you do have options. Alternatives to big banks have been around
for a long time, and if you haven’t looked into them yet, it might be time. One good alternative is a local community
bank. Their fees and charges can be lower than national
chains, and you can be pretty sure they won’t use your money for risky bets or Wall Street
gambles. Community banks also tend to make investments
in the immediate region, helping to develop projects and businesses that create jobs and
improve spaces in your hometown. There are over 52,000 community bank locations
nationwide and you can find ones in your area by checking out the ICBA’s website. Then there are banks that have no physical
location whatsoever: Online-based banks like SIMPLE and CHIME usually have lower fees partly
due to having no brick-and-mortar expenses. They also tend to have no account minimums,
don’t charge overdraft fees, and ATMs are fee-free at over 30,000 locations. Both local banks and online-based banks still
typically offer FDIC protection on up to $250,000 worth of deposits per person and account type. So for most people, they are just as secure
as the big national chains. You could also choose to ditch banks all together,
and open up an account at a credit union. Credit unions allow you to make deposits and
withdrawals, take out loans and credit cards, and enjoy most other services you might expect
from a bank. But unlike banks, credit unions are all non-profit
entities. Any profits made by the credit union are returned
to you in the form of reduced fees, higher savings rates, and better loan terms. This is because credit unions technically
don’t have “customers”–they have “members”. Everyone who keeps their money at a credit
union is seen as a part owner of the institution. And they usually all share a common bond – perhaps
they all live in a particular geographic location, work in the same industry, or are all alumni
of the same university. One member’s deposits end up becoming an
auto or business loan for another member. Teamwork! Credit unions offer FDIC-like protection through
the NCUSIF, and most credit unions are part of a national shared-branch network which
allows you to bank at thousands of other credit unions just like they were your own. So depending on your credit union, you could
have access to even more ATMs and branches than with a big national bank. Maybe this all sounds great to you, and you’re
ready to say sayonara to your big bank, but there are a few drawbacks to consider before
making the switch. Because of their size and scope, big banks
are better at international banking and lending. Making a withdrawal from abroad or getting
a loan in another country can be a tall order for many local banks and credit unions. So if you do a lot of travelling or have a
cross-border business, sticking with a big bank can make your life easier. Also, smaller banks and credit unions usually
can’t compete with the big banks’ digital offerings. So if things like banking apps, budgeting
software and online accounting tools are important to you, be sure to inquire about the technological
support they offer. Even though these advantages come from big
banks’ huge size, in their ads they often go out of their way to portray themselves
as homey, familiar, even rustic. It’s as if they’re saying that little
local organizations are more trustworthy. So, if you find these commercials persuasive,
maybe you should check out the smaller organizations in your neighborhood. And that’s our two cents!

100 Comments

  • Rumple Stiltskin

    A few years back we sold a rental and put the money in Wells Fargo, but considering how it is exposed to the quadrillion dollar derivatives market we decided to put a substantial amount in two different credit unions who pay one hell of a lot more interest. When we transferred the money which could have taken mere minutes took Wells Fargo a week to transfer the money, allowing them to gain a few more pennies of interest off our money under the guise of making sure everything is legitimate and/or legal. It was total horse shit my friends.

    At one point the teller asked what we were doing with the money, and just as my other half was about to blurt out our intentions, I stopped him, because I understood what the tellers were tasked with, such as asking questions of their depositors about their intent when large amounts of money are involved. I also told her and her supervisor that it was none of their business and that I knew what they were doing.

    Put your money in Credit Unions my friends. Yes they may be exposed to some derivatives, but it is not even close to how much the large banks are expose in that market. What you may not know is that a year ago or so, the FDIC was instructed to pay off the derivatives market debt first before any deposits are covered. This means that the FDIC will have no money left to cover your deposits and thus you will lose everything. Even though the FDIC is backed by the government, our government is broke and will not be able to cover the "Quadrillion" in derivatives when the market crashes !

  • CaptGamer 101

    Wow they turned a great topic into something boring. The way they presented the video is not the greatest choice for this video

  • suadela87

    So if I live debt free, a credit union would probably be a good fit. The few times I do travel abroad, I’m sure I can figure something out for that.

  • Jack West

    BoA was never bailed out…they helped the government bailout Goldman and sacs. more liberal bs. fact check before you become another blind follower

  • Frank Martinez

    Bank of America has been good to me… its convenient there all over the place, they dont bother me by calling me. And I mainly use there online app to do all my business…

  • David Carson

    I left Wells Fargo in the mid 1990s for a credit union 25 years ago after I got charged an overdraft after making a deposit at a window instead of through the ATM–never looked back

  • Roger Bacon

    I have enjoyed my membership in Lake Michigan Credit Union. Their Max Checking PAYS 3% interest on the balance up to a balance of $15,000 or up to $450 a year.

  • Tyler H

    how many minutes do i need to wait before you get to the differences between banks and credit unions versus you doing your stand up bit?

  • hyou zan ren

    …? Its only a matter of time till big banks "lobbying" The goverment and ban credit union from operating in US!

  • Zak Thompson

    Is there an error in this video? At the end of the video ( 4:49 ), he is making a statement about "Big banks" but then refers to them as "little organizations".

  • Michael Smit

    Credit unions are awesome. I've used them most of my adult life and had almost entirely good experiences. None of the hidden fees and other bs that seems to come standard with the big banks.

  • fffjkjk jkjkjk

    When I paid off my mortgage, citibank downgraded my checking account from "gold" status and all the sudden start charging me $35 a month for maintaining less than $2000 in the account back in 2015. I was wondering this awkward concept: I handed over $1999 to their pocket for free to keep(they are free to use it) and they think it's too little and penalize me for giving not enough?
    Wow, Americans, wake the F up. These institutions are parasites.

  • jfwilki2

    My accounts are all with a community bank that isn't really a community bank anymore. It has about 30 branches and $2.1 billion in total deposits, but it's headquartered in a small town (about 2500 residents) and is still very community-focused. I've been banking with them since 2010 and have ever had an issue.

  • installtekz Ltd

    Thanks for introducing me to credit unions! I searched the web and there's not 1 union within 50 miles of me in UK. Maybe I should start one πŸ˜‰

  • Jahari Shears

    Great video, clear information good graphics thank u πŸ‘πŸ½πŸ‘πŸ½πŸ‘πŸ½πŸ‘πŸ½πŸ‘πŸ½πŸ‘πŸ½

  • Carlos Avila

    Thank you for the valuable information. I found out I was already part of a community bank. Several people I work with have recommended a local credit union too.

  • Logan Lopez

    My parents had setup an account for me with Wells Fargo and we were all hit by the fraudulent accounts scandal (which I'm still waiting for my refund!). Their "overdraft protection" fees were $25 a pop. I went to my university credit union, and one time I forgot about my car insurance and had an overdraft. They kicked in from my savings to cover it directly so I wouldn't be late and charged me $4. But my card got declined while I was eating out and realized that it was empty. As soon as I made a manual transfer, they had refunded me the $4 overdraft transfer fee. Absolutely amazing. No requirements for minimum balances or using my card 10x a month. And also when I was finally done with WF and switched over my direct deposit, I got it on Thursdays instead of the usual Fridays. All around better I can't recommend using one more.

  • Aonoymous Andy

    I switched from wells Fargo (lying and corrupt bank) to a local credit union in 2018 and its been one of the best financial moves so far. they have a great app, online banking, big ATM network with no fee, offer many loans, and every month they give me a dividend on my deposits

  • Katherine Walker

    I refinanced my car from a traditional bank to a credit union and went from a 13% interest rate to less than half that.

  • Mr. Sharp

    Whether or not they have high interest savings accounts should be the main qualifying factor for choosing your bank. Amex or Ally are my favorites

  • Andrew Mausisa

    The best part of using a credit union is you get your direct deposit one day before everyone at your job using a bank πŸ˜€

  • CW4 Miller

    You guys did not mention the negatives of a Credit union.
    The penalty on CDs are larger then big banks
    Options for accounts are limited
    ATMs are hard to find and branch locations
    They are not open 24/7 sometimes
    If you want to purchase a Car on a Sunday. You are out of luck
    Brokerage fees are higher and they can change rates at times
    They are not high tech
    They do not offer rewards

    Being a small business owner who owns properties and has big banks like Wells Fargo. The only thing I use credit unions for is Auto loans. And even then. It’s a pain in the ass to complete the transaction. Many times on other loans they messed up the paperwork or required my wife and I to be present to sign paperwork when it’s not required in big banks. Do your research people!

  • William Bray

    Yeh, like what's a TV Commercial… you mean YT commercial? And I've still never seen a 'Big Bank' YT Commercial

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  • Little Raven Designs

    Why not both, like they said, big banks have great use of technology. I have both each accounts have their own job. One to pay main bills, one is fun money, another to save with keep the change, savings, and one just for checks.i get free accounts from credit unions and they have amazing loans, while big banks are used everywhere and I can sell art with their app, plus pay bills easier. Check them all out and use them to your advantage.

  • Anh Trieu

    Quite frankly, after 2008, we should be screaming for big banks executives to be put behind bars rather than doing business with them.

  • Agent_WestCoast A

    Big banks are horrible for most banking needs. They are only good for credit cards. If you want a good checking/saving account/car loan/home loan, go to a credit union or online bank.

    *Checking account: Credit union or Charles Schwab.
    *Savings Accounts: Credit Union or Discover saving account.
    *Car/Home loan: Credit Union.

  • Trifire W

    Bankers in hell, I believe it. Like lending money on a business they have the lean on just to get your money , knowing full well that the business will not be successful.

  • Carlos Iraheta

    Thank you! Could you make a video on sole proprietor vs LLC and the benefits and drawbacks of both? #nice2geekyou

  • Dieter Gerding

    The true danger is the fiat-currency-debt-system. You should never build a house on sand. Or paper. We are witnessing the last chapter of the actual System. It cracked 1998 – it almost burst 2008 and the next time it will be game over. Try sound money instead!

  • Rex

    basically have one national bank account to have international account or credit card if you need those and put rest of money into credit unions for like saving accounts were it is safer and away from corporate greed.

  • Nuga Nuga

    @scottashley01 on Instagram helped me, I'm damn rich nowπŸ€‘πŸ’°πŸ’². I assure you he's πŸ’― legitβœ” text him now

  • S. D. H.

    Predatory corporatism – working as intended by our corrupt two-party system government, who is in the pockets of big money interests.

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  • Mike Dercoli

    I know this isn't the main point of the video but using the 2008 financial crisis as an example of investment banks not being held accountable for predatory practices is kind of dishonest. The whole reason this happened was because the Glass-Steagall act was repealed by the Clinton administration with the intention of making it easier for low income people to get loans for houses. The whole reason this bill existed was to keep investment banking from starting a cyclical market bubble like what happened leading up to the great depression when people were taking loans on credit to invest in the stock market massively inflating its value. The same thing was allowed to happen with mortgage bond trading leading up to 2008 because this act was repealed. So it isn't that the banks weren't held accountable for what they did its that the government essentially gave them the legal OK to do this.

  • cryptoslice

    as dodgy as banks are im actually am going to refinance from a credit union to a bank. i was with a bank first then thought the credit union was giving me a good deal but soon found out it wasnt. the bank i was with had a better deal in the long run, not by much but it was better. At the end of the day its not much different

  • d6487

    hello,
    What is the terminology for the following description:
    Let's say you have 6 bank account from different bank institutions.
    But, instead of seeing 6 different bank statements each month. You only see only ONE simple Statement which summarizes everything into one cleanly. I think it's called a CHARD or CARD..i forgot. Please help!!

  • Dano1947

    I know banks aren't home town familiar, I went to my bank, WF and asked about fees and they asked for my ATM card and license just to answer the question. I'd been banking there for 18 years but they treated me like a total stranger. Their turnover is so high, they don't have time to get to know you anymore. Welcome to modern banking where every customer is a total stranger, no matter how long you've been banking there.

  • The JV Family

    I'm 21 years old and never opened an account with any bank but i will go to credit union! Hope i save alot as well build credit!

  • Lesbian Amazon Sister

    I have only ever stuck with my credit union because banks offer nothing of value to me, and are too eager to take my money.

  • Ryan

    Hmmm no mention of how the banks returned all the bail out money. No mention of banks being forced to take a bail out. No mention of the large insurance company AIG who insured all the garbage mortgage investments, who needed the biggest bail out. No mention of the law that taxed some of those bonuses up to 90%. No mention of the capital gains the government made on bailing certain banks out. Just another typical misinformed video

  • Ambareesh Balaji

    The true life hack is to get a credit union and a high interest online bank as well as a zero fee big bank. The masterplan is to pick US Bank, get a credit card from them (US Bank credit card holders get free banking with no minimum balance), and get their overdraft line of credit, which means no overdraft fees, just sky high interest rates that you are probably going to pay off immediately.

  • Jasper DiLincoln

    I've been with some Credit Unions as well because people have said they was better, but they are crooked as well

  • Mike Nolan

    Wells Fargo would not even look at me so fuck them I now have a new home 3 new cars a sxs and a brand new rv thinks to my Credit union been with them for 2 years have not missed one payment

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