Our experts choose the best products and services to help make smart decisions with your money (here's how). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
Courtesy Laura McCamy
- Large national banks often have more branches than local banks, especially if you travel frequently.
- However, I'm much happier using local banks and credit unions where I can get more personal help.
- Credit unions aren't always perfect, but I'm happy to deal with the occasional hurdles.
I moved to San Francisco in the late 1980s, and I needed a California bank. Before I left the East Coast, I had done a survey of local banks and savings and loans for the ad agency where I worked, and that taught me that savings and loans were by far the better choice. S&Ls seemed much more focused on helping consumers and less on skimming profits from my bank account.
Savings and loans disappeared after the S&L crisis, but credit unions are very similar, and I have always stuck with local banks and credit unions for my business and personal banking. I've never regretted that decision.
The pros and cons of big banks
There are benefits to banking with a large national or regional financial institution. My credit union has no branches near where I live, and I sometimes have to pay ATM fees because I can't find a compatible ATM. However, with the rise of online banking, I rarely need to go into a branch these days.
The other benefit of large banks is national and even international coverage. If I moved to another state or spent time abroad, I might need to switch financial institutions. Some of the bigger banks have national and even international presence, so they might be a good choice for people who move around or travel a lot.
However, there are significant downsides to working with a big bank, such as higher fees. Since I moved to San Francisco, Wells Fargo has been sued repeatedly for defrauding customers, including several lawsuits in recent years. I feel safer with my money at more local (and ethical) institutions.
Why I love my local bank
The most important aspect of a local financial institution, for me, is superior customer service. For example, when I first started banking with my traditional bank I incurred fees because I didn't understand a bank policy. I was able to call customer service, talk to a human, get the policy explained, and have the fees reversed.
More recently, when I was having issues with my business checking account, a kind bank employee at one of the branches changed how my account is set up to make it easier for me to deposit checks.
We have several accounts at our credit union
Credit unions are not-for-profit institutions, and I feel lucky to be able to have accounts at one, since membership is often limited to people in a certain profession, specific region, or working for certain employers. But once my wife's work gave us the option to join one, we've never wanted to put our money anywhere else.
The credit union has low fees and lets us set up multiple, linked accounts. That allows my wife and I to have two joint checking accounts, one for her and one for me. We each have control over our own finances, but we can access each other's accounts if needed.
And when one of us dies (hopefully a long time in the future), the other will be able to take control of all the accounts without probate or other delays. The ease and affordability of opening multiple accounts allows us to manage our finances the way we want while holding our money jointly.
Our mortgage is through our credit union
We also have a savings account where we build reserves for travel and unexpected expenses. And we were able to open a second savings account to deposit money for our home expenses. Our mortgage payments come from that account automatically.
Perhaps my favorite thing about the credit union is that it holds our mortgage and, unlike other mortgage lenders, it will continue to service it even if the loan is sold. The credit union gave us a good rate and stability that I hope to stick with until we pay off the loan.
Working with a small financial institution isn't all rosy. Recently, our credit union app had a glitch and wouldn't allow me to deposit checks online because I'm the second name on the account. I had to have my wife make my deposits for two months, and it was annoying. But I'll put up with occasional inconvenience in exchange for local financial institutions that give me better service and more control over my money.
from All Content from Business Insider https://www.businessinsider.com/personal-finance/glad-keep-money-credit-union-instead-big-bank-2023-10
via gqrds
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.