blacknblueland:

sarahlee310:

veganlove:

Don’t just rush in and withdraw your money, because you might end up hurting yourself. Do it the smart way. It may take a few weeks, but you don’t want to leave yourself hanging.

IF YOU HAVE DIRECT DEPOSIT:

1) Use whatever amount it takes to open up an account at a credit union (research them first to find the one that suits your needs, obviously).

2) Switch your direct deposit to your new credit union account.

3) Wait for direct deposit to actually make a deposit in the new credit union account.

4) Switch all your bills and anything else attached to the old bank account to the new credit union account.

5) Once you are certain nothing is attached to the old bank account, go in there and withdraw your money. Don’t be a dick to the bank employee, they’re just another one of the 99% like you working a job to get by…unless they’re rude, of course. If they ask why, tell them their employer is corrupt and you can no longer do business with them in good conscience and leave it at that. Don’t waste your time lecturing. They probably agree with you but need to pay rent.

6) Put your money in the new credit union account.

7) Get someone you know to do the same.

IF YOU DO NOT HAVE DIRECT DEPOSIT:

1) Open up the new credit union account with whatever amount of money is required.

2) go to step 4 above and follow the rest of the steps.

awkward and probably hugely ignorant question, but what is the difference between banks and credit unions? are they not basically the same thing?

It is never ignorant to try and learn something new.  :)  Let’s see if I can help.

Credit Unions:
A credit union is a not-for-profit financial institution that is owned by the people who belong to the credit union. Its members are made up of people who share a common bond or affiliate, such as belonging to the same church, school, employer, organization or community.  As a member of a credit union, you get a vote (as does everyone else with an account) to elect other members to the credit union’s board of directors.

Since every member is an equal owner and therefore shares a common bond with the other members, the personal experience tends to be much better at most credit unions. As co-owner, the credit union works for you to make sure you are happy. According to Bankrate.com, “Credit unions have topped the consumer satisfaction ratings in American Banker’s annual survey for 12 years in a row.”

Since a credit union’s primary focus is its people, or co-owners, they are more concerned about making you happy than turning a profit. As a result, credit unions typically offer more educational services and seminars to teach you about all financial products so you can make the best decision. Banks, on the other hand, may be more inclined to recommend only those products that bring in higher corporate profits.

As a not-for-profit organization, credit unions have many advantages over banks. They are exempt from most state and federal taxes, do not have many marketing costs, or high salaried executives. This allows credit unions to pass on great rates to their members, including:

• Higher Interest Rates on Savings Accounts
• Lower Rates on Auto Loans, Mortgages and Credit Cards
• Free Checking Accounts
• Lower Penalties for Overdrafts and Late Payments

Your money in a Credit Union  is insured and regulated by the National Credit Union Association, which is the same as the FDIC coverage.

The down side of a credit union is their conveniences. They will typically have fewer ATMs, fewer branches, and usually lack variety in investment products and services. Finding and joining a credit union can be a bit trickier too. It may just take a phone call to your human resource department to see what options your employer offers. Otherwise you may have to do a bit of homework, but virtually anyone in the U.S. can join a credit union. Use findacreditunion.com to help you do your credit union search.

Banks:
Banks are community, regional or national for-profit business corporations owned by private investors and governed by a board of directors chosen by the stockholders. Unless you have a personal banker, you generally will not receive the same level of service and satisfaction as you would from a credit union. Rates, fees and penalties will undoubtedly be higher too, but these inconveniences may be outweighed by the benefits.

Banks will have a much larger selection of products for you to choose from, including retirement plans, stock investing programs, and other services not offered by credit unions. Secondly, banks can offer more convenience with more ATMs and more branches, and it is as simple as walking in the door to join

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Small local banks are another good option if you don’t have a better credit union accessible.

Also I’ve recently learned that USAA - which used to serve only the military, now allows anyone to open checking or savings accounts and buy some kinds of insurance with them - some insurance products are reserved for military members and/or their family members now, I believe.  I have always heard they provide good service and that they will refund ATM fees that other banks charge you to use their machines - but double check the fine print on that.

USAA, is a reciprocal. Dividends are paid back to members, so there is no overt profit motive. The bank part of the company is indeed a FSB, but the overall company structure allows them to act more like a credit union.

You may want to see if the credit union you are considering  is a member of the Co-Op network. This lets you use your debit card sans fines for withdrawals and deposits at at any credit union on the network nationally. It includes hundreds of credit unions across the US and suits the needs to be able to access an ATM anywhere you go.

Co-Op Network Credit Union locater

Check out Move Your Money

Check out High Yield Reward Checking Accounts

Easy to understand explanation via cute animated YouTube video:
The Difference between Banks and Credit Unions: Part 1 (There are at least two additional videos in this series, easy to find if you like this one.

What’s the difference between a bank and a credit union? via HowStuffWorks

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Hope this helps. ~SarahLee

Timely.

True story