Credit Unions: The Best Kept Secret in Banking

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  • čas přidán 30. 06. 2024
  • What is a credit union? If you don't know about what credit unions are, boy have I got news for you - you've been doing your banking wrong! In this video, I discuss the age old debate of Credit Union vs Bank. I tell you about what a credit union is, how a credit union works, and what makes a credit union different from your normal bank. At the end, I'll give you my recommendation for whether you should use a bank or credit union.
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    FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY. NOT LEGAL OR FINANCIAL ADVICE. The information provided in this video and on this channel is for educational and informational purposes only. It is not intended to be a substitute for legal or financial advice that can be provided by your own attorney, accountant, and/or financial advisor. Practical Personal Finance accepts no liability whatsoever for any losses or damages arising from your own personal financial decisions. You are advised to consult with your financial advisor, tax professional, or attorney regarding any and all financial decisions involving your own income and taxes.

Komentáře • 120

  • @JulieStevenson752
    @JulieStevenson752 Před 2 lety +68

    I love my credit union. Been with them for 25 years

  • @zelinaworden111
    @zelinaworden111 Před 2 lety +64

    I belong to three Credit Unions for over 50 yrs now.
    I don't deal with the banks.

    • @joshuapierre4661
      @joshuapierre4661 Před rokem +2

      & those are?

    • @BlackQueenMagic
      @BlackQueenMagic Před rokem

      Wow! I thought credit unions were new!

    • @MK-zy3yd
      @MK-zy3yd Před rokem

      @@BlackQueenMagic I thought my cat liked me, he just stares at me when I sleep. I wonder what he’s up to, think he might be sizing me up.

  • @mikeflair6800
    @mikeflair6800 Před 2 lety +40

    Vanguard (compared to other investment firms like Fidelity) has been set up like a credit union (no investors, just owner depositor, profit distributed as lower cost)...but most people do not know this. This is how Vanguard keeps their fees lower than competitors.

  • @veroniquebellamy4741
    @veroniquebellamy4741 Před rokem +11

    In Alberta, Canada, holdings at credit unions are more secure than banks. CDIC insurance only covers a certain amount of money. Credit Unions, however, are fully insured (with exceptions for things like common shares and mutual funds). It's why, even though I work at a big bank, I bank at a credit union.

  • @suecarolburton1481
    @suecarolburton1481 Před 2 lety +8

    I have been a member at DFCU Credit union since 1994. I love it.

    • @iwoww562a9
      @iwoww562a9 Před rokem

      Downey federal credit union? 😳

  • @j3ffm1s7r0
    @j3ffm1s7r0 Před rokem +9

    Thank you for the clear explanation, I’ve tried to understand through a few videos before yours and your video was the easiest to understand. Cheers mate!

  • @cochetasetalsingh8908
    @cochetasetalsingh8908 Před 8 měsíci +2

    Love them! Always a member! Great information! I will continue to watch for your vital information. Thanks.

  • @emsiesenvelopes
    @emsiesenvelopes Před 2 lety +40

    Thanks for the introduction to credit unions - I really had no idea what a credit union was before this video, so it's useful information!

  • @maggiecostello7120
    @maggiecostello7120 Před rokem +3

    Andrew, good one!! Thank you for that very useful information! I'm going to join a Credit Union! :) Keep up the good work!

  • @chinoguarcas4205
    @chinoguarcas4205 Před rokem +3

    Thanks for sharing all your knowledge about credit union.

  • @vigilfox
    @vigilfox Před 2 lety +33

    As always, thanks for the important information and the educational breakdown! Valuable stuff.

  • @grantlam9247
    @grantlam9247 Před rokem +5

    I am considering to get Credit Union!! Very informative

  • @christophergould2933
    @christophergould2933 Před rokem +1

    Good recap of the benefits of a Credit Union.

  • @tinaportelli7282
    @tinaportelli7282 Před rokem +2

    Excellent information, thank you

  • @rlemoyne007
    @rlemoyne007 Před rokem +1

    Around 4:20 we finally get to know you are talking about US credit unions. Big differences with banks and credit unions in Canada.

  • @stellarv5689
    @stellarv5689 Před rokem +1

    Thank you for sharing this 🙏

  • @scootergirl3662
    @scootergirl3662 Před 2 lety +9

    “They have tens of millions of dollars to invest into an app. So yes, they better have a killer app “
    Looking at my Chase app freezing for five minutes

  • @rochellehughie1455
    @rochellehughie1455 Před rokem +1

    I am a member of a credit union.i send a shout-out to South Carolina State Credit Union

  • @theresaparsons1157
    @theresaparsons1157 Před 2 lety +4

    I absolutely enjoy Credit Unions, In Florida we have several.

    • @shortyg1018
      @shortyg1018 Před rokem +1

      Yeah there's so many here in Texas I don't know who to choose from lol.

    • @MK-zy3yd
      @MK-zy3yd Před rokem

      I live in Florida too, my mom has several boyfriends.

    • @diegocenteno8835
      @diegocenteno8835 Před měsícem

      @shortyg1018 any updates on who you went with ?im in texas too and im considering energy capital

  • @neeraatkins6091
    @neeraatkins6091 Před 7 měsíci

    I do work for one for 2yrs. Everything you said is true

  • @GravInducedSleepTrac
    @GravInducedSleepTrac Před rokem +10

    Considering what is now happening with BIG banks credit unions are the better route for SURE! Thanks for the great information. Do credit union HOLD certain deposit amounts? I really get frustrate with big banks when they do that, especially when I have been banking with the same big bank for years & years!

    • @DroneConflict
      @DroneConflict Před rokem

      Often the immediate access restrictions to deposit funds are done as a fraud/laundering measure and may be required. Many banks and CUs do waive these restrictions if you set up a business account and provide more information about yourself and the entity

  • @greenecostyle8957
    @greenecostyle8957 Před 6 měsíci

    I’m sold, literally switching over to my local credit union tomorrow!

  • @Lenny4400
    @Lenny4400 Před 10 měsíci +1

    Credit Union s have helped me more than 🏦 s!

  • @markanthonyabejoro2537
    @markanthonyabejoro2537 Před 2 lety +1

    Yes I'm a member ocean floor credit union

  • @thatredheadguytv
    @thatredheadguytv Před 2 měsíci

    I’m glad I switched back to a credit union a few months ago. I’m at a very good one! #FMFCU

  • @chapluck
    @chapluck Před 11 měsíci

    I recently became a alliant member,and let's see what happens 🎉

  • @jacobbonilla1968
    @jacobbonilla1968 Před 2 lety +6

    Im not too sure i had wells Fargo they were charging my checking account when i didn't put money into it and they will close your account if its inactive same with chase bank thank god for RBFCU credit union ivebeen with them for almost 2017 i think

  • @ColtenGarrett
    @ColtenGarrett Před rokem +1

    My credit union has more features and that actually help then any big bank I know of.

  • @michaelhuber6476
    @michaelhuber6476 Před rokem +6

    Navy Federal is pretty good. It has a lot of branches

    • @Josh-py9rq
      @Josh-py9rq Před 2 měsíci

      Nope you have endless people faking having a family member who was a vet what happens? endless accounts created and now they can't help people they only accept 16 percent of fraud reports go look up consumer reports or the better business bureau reports it's horrendous! I prefer my local credit union over them. Luckily NFCU has decided to start closing these fake accounts down because good lord I won't even get a response for a message for a week. This is unacceptable to me from NFCU Hence why I prefer USAA I still have my NFCU credit union open but I am very cautious!

  • @rockarollawmn
    @rockarollawmn Před rokem +1

    I need to ask- what place JUST focuses on keeping my $ safe & secure?
    I DGAF about smiles, extras, equity, focusing on races, genders, giving to the community, voting for whatever employees, loans, donating, coin counting, paper shredding, etc.
    I JUST want a place to put my $ that will NOT EVER "not" have it when I want to withdraw it partially or in it's entirety.
    What place is essentially a locker with a COMPLETELY non-pickable, non-destroyable lock that has ATM access & online access ONLY?

  • @josephzhang2492
    @josephzhang2492 Před 2 lety +8

    In New Zealand, major banks changed the their policy of accessing other banks ATMs (I think in early 2018). BTW, New Zealand Banks does not accept Cheques anymore (normal cheques, international cheques and traveller cheques). New Zealanders use online banking and card payments (both debit and credit card) cheques. (My friends, family and acquaintances are shocked when some people from other countries that does not have any bank account. Receiving wages and salaries by cheques are unheard-of in New Zealand)

    • @PracticalPersonalFinance
      @PracticalPersonalFinance  Před 2 lety +3

      Always interesting to hear about what it's like in another corner of the world. Thanks for sharing!!

    • @dmc1806
      @dmc1806 Před rokem

      Sounds like you find hard 2 get small jobs tax free in the hand work is off the table also working state job no side jobs. No work for wait prison sounds alot more free than that. You make it sound like your all in a cult. Excuse me I do NOT mean 2 offend you or anyone else. Just free market getting controlled by big tech. Which runs off poor who work for cash day here or their for food or lodgings it's sad 😔 my friend. GOD BLESS YOU AND YOUR'S AMEN ✝️. FROM DUBLIN CITY REPUBLIC OF IRELAND 🇨🇮.

  • @sorahweiss5821
    @sorahweiss5821 Před 2 lety +1

    the one I joined only allows you to draw $2,500 ... otherwise, takes weeks to get more. Tricky for a main account, if you are paying your rent.

  • @apologeticinsights
    @apologeticinsights Před rokem +9

    Thank you for this video. I'm trying to determine if the NCUA is more solvent than the FDIC relative to the possibility of a "Bail-In". Do you have any information on that? Keep up the great work.

    • @definitelynotobama6851
      @definitelynotobama6851 Před rokem +11

      Credit union employee here. All credit union accounts in the United States are insured against the failure of the credit union in the same way bank accounts are.

    • @gunblade7610
      @gunblade7610 Před rokem

      ​@@definitelynotobama6851 yikes, then that begs the question do we trust either then in case of a bail-in. There was that video leak where the FDIC members say that essentially FDIC does not have enough assets to liquidate to make people whole when it comes to their deposits and with that law being passed where banks will not get bailed out by taxpayers (in a sense I'm ok with that...) Banks will bail-in the deposits of our us little guys to shore up the funds of their whales and then we are left holding the bag. I was hoping NCUA operated differently in that maybe since they are smaller and more local they don't do fractional reserve and only loan out what they have and maybe their accounts don't offer HYSA but that is because they want to be able to ensure people's deposits... If you are saying NCUA is pulling from the same sinking ship of FDIC... Then it seems like on at least how secure your deposits are, it's the exact same thing as the big banks?
      Hmmm.... Maybe I need to get me a big mattress?

    • @DroneConflict
      @DroneConflict Před rokem

      ​@definitely not obama and CUs have higher demand deposit requirements I believe

  • @tallblackguy9993
    @tallblackguy9993 Před 2 lety

    Joined my job’s credit union when I started and I don’t even use my regions account anymore

  • @MrRyanlipp1980
    @MrRyanlipp1980 Před 2 lety +5

    Don’t the big banks take your money and invest in the world markets like the stock market and the bond markets? So when the bond market completely fails your bank will freeze

  • @Skitsandgiggles
    @Skitsandgiggles Před rokem +4

    So which union would you guys recommend? At least for someone with no big financial plans anytime soon, just want low rates and good service

    • @basedbulgarian511
      @basedbulgarian511 Před 10 měsíci

      Credit unions often have membership requirements (geographic area or employment in an industry or company), so look on Google see what you can find for your area. One of the larger credit unions in the US only has one requirement: a US-based address. It's called the Pentagon Federal Credit Union (PenFed for short)

  • @icemizul
    @icemizul Před 2 lety +1

    ❤️PenFed and 👍🏾GreenState credit unions

  • @ahmaniwesley3316
    @ahmaniwesley3316 Před měsícem

    LakTrust Credit Union out of Michigan 〽️😎

  • @Raquel-xm8cb
    @Raquel-xm8cb Před 2 lety +1

    Good morning my name is Raquel and I felt in my spirit to find about banks or where to Open am acct. We are creating a ministry for homeless and I need an honest opinion in reference to bank. I want to thank you for your information. God bless

  • @IBHIPRU
    @IBHIPRU Před rokem

    Are credit unions subject to bail in laws? To what extent is the NCUA funded? Just curious

  • @FUNNYMANERICWHITE
    @FUNNYMANERICWHITE Před rokem +1

    Thanks

  • @KittyOzzyZiggy3895
    @KittyOzzyZiggy3895 Před 2 lety

    i have never partner with a credit union i think i have to start

  • @newbeginnings9457
    @newbeginnings9457 Před 2 lety +10

    Navy Federal 😎

  • @musashidanmcgrath
    @musashidanmcgrath Před 2 lety +11

    Not so many decades ago, there were ONLY community credit unions in Ireland. There were no fiat fractional reserve based banks at all.
    I've always been a community credit union advocate. Fractional reserve banking is one of the worst things to happen to humanity. The world would be a much better place if fiat banking had never enslaved humanity in an eternal cycle of debt enslavement.

  • @Harmansehgal5
    @Harmansehgal5 Před rokem

    Where i can find this? Any site? Any location in my city?i need loan for my house

  • @tonightwerideee
    @tonightwerideee Před 2 lety +3

    what's a credit unions relationship with fractional reserve banking?

    • @Drknnja
      @Drknnja Před 4 měsíci

      The same as a bank.

  • @jeaninebrown3889
    @jeaninebrown3889 Před rokem

    Desert Financial in Phoenix

  • @davidwilkinson6099
    @davidwilkinson6099 Před 11 měsíci

    Golden1 CU rocks!

  • @israelisreal7781
    @israelisreal7781 Před 2 měsíci

    At a credit union, would I be able to take out ALL the money I have in savings with no problem?

  • @289cobra9
    @289cobra9 Před 26 dny

    I'm with DCU and Aligh credit union.

  • @user-cf7pc9qw4q
    @user-cf7pc9qw4q Před rokem

    I want to be a member of the credit union, How can I join?

  • @bertrandlah4465
    @bertrandlah4465 Před 9 měsíci

    Victoria Customs corporative credit union. VICCUL Cameroon 🇨🇲

  • @owascoshaw
    @owascoshaw Před 10 měsíci

    If I wanted to apply for a car loan, do I need to be a member first? Is there a fee?

    • @basedbulgarian511
      @basedbulgarian511 Před 10 měsíci

      You do have to become a member. There's no fees usually with credit unions, but when you become a member, you usually automatically get a basic savings account opened for you, and you may need to keep a minimum balance on it. With most credit unions, the minimum is pretty low. Mine is $5

  • @Al_Camino77
    @Al_Camino77 Před rokem +1

    I’ve dealt with both. The difference is minimal. If you like shitty tech and apps that barely function and like watching you credit union reinvest in mergers and building massive new buildings than redistribution to members or better interest rates have at it.

  • @DJSTOEK
    @DJSTOEK Před rokem

    ❤❤

  • @wellshititskyle
    @wellshititskyle Před 2 lety

    Do you know what just as good sofi bank

  • @markanthonyabejoro2537

    Is ocean floor credit union a legit image??? Please anyone in give an idea.thanks

  • @UniqueRecipe101
    @UniqueRecipe101 Před rokem

    How do I get in one

  • @Imhim247
    @Imhim247 Před 2 lety +3

    Nice. It's safe to keep million of dollars in credit union?

    • @PracticalPersonalFinance
      @PracticalPersonalFinance  Před 2 lety +8

      Hey Imhim! The most you should ever keep stashed in an account at a bank or credit union is $250,000. That's the amount you're insured for by the FDIC (for banks) and the NCUA (for credit unions). Of course, you could maintain multiple accounts at multiple financial institutions, but if you're dealing with that kind of cash, I feel you're much better off investing that money in a brokerage account, into something like index funds or bond index funds.

    • @Imhim247
      @Imhim247 Před 2 lety

      @@PracticalPersonalFinance Thank you so much! I really appreciate you for telling me about this

    • @iamapigeyedtraitorthatisin1319
      @iamapigeyedtraitorthatisin1319 Před 2 lety +5

      If you had that kind of money I'd doubt you would ask someone on CZcams for advice.

  • @HungNguyen-se8dn
    @HungNguyen-se8dn Před 11 měsíci

    My choice is the Lake Michigan CU❤

  • @Stopp200
    @Stopp200 Před rokem

    St.Louis community credit union

  • @deadshaper1
    @deadshaper1 Před rokem +1

    WHY do I even want to have to walk into a CU? I have ALLIANT & American Airlines CU accounts and I do mobile deposits,, I can pull from local ATM's w/o getting scalped, and transfer funds or disperse checks online instead of snail mail. Accounts wire money directly to my accounts. Banks suck..... do I really want NO interest or 1/10th of 1 percent at a bank when I can earn 1.70 to 3%+ interest in a credit union. I

  • @desiroo279
    @desiroo279 Před 6 dny

    Genesis Credit Union, Minnesota

  • @antoniogriffin5716
    @antoniogriffin5716 Před 15 dny

    I LUV MY CREDIT UNION.

  • @JohnDoe-bh8bt
    @JohnDoe-bh8bt Před 2 lety +2

    What credit union do you recommend?

  • @2020Bookworm
    @2020Bookworm Před 6 měsíci +1

    Do credit unions accept anybody off the street?

  • @deejay4837
    @deejay4837 Před 6 měsíci

    "how sophisticated their mobile app is"....Life does not revolve around a mobile app kid, just say how well their online presence is....

  • @Chris-RN
    @Chris-RN Před 4 měsíci

    👏👏👏👍

  • @joeyparra3937
    @joeyparra3937 Před 5 měsíci

    APPLE FCU ❤️💯

  • @iggydagawd7287
    @iggydagawd7287 Před 2 lety +1

    Need Help I have a Question!!

  • @Imtussel
    @Imtussel Před rokem

    How does competition affect this? If credit unions aren’t obligated to a shareholder, then they can set the rate however they decide. Banks have to compete, and so credit unions have to compete with bank rates. Banks seem more reliable in the sense that they have a built profit-based model, that is obligated to financiers. Credit systems run on something a lot less stable it seems.

  • @deshannonfitzgerald7952

    do i take all of my money out of my bank close the accounts and put my money in a credit union? or do i keep the accounts open and leave the minimum amount in the bank?
    Cancel
    Comment

    • @capps2015
      @capps2015 Před rokem

      Banks have Utility. If its a small community bank keep the account. If its a big national/regional close it unless your getting a nice rate.

  • @tlbx57
    @tlbx57 Před rokem

    Gain real money, God's currency, gold, silver, land and cattle (commodities that people need to survive).

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    @thomasnewman6811 Před 2 lety +7

    Venturing into the trading world without the help of a professional trader and expecting profits is like turning water into wine, you would need a miracle, that's why i trade with mrs Eva heather, her skills set is exceptional.

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      @michealstackhouse9618 Před 2 lety +2

      I'm surprised you know her too! I've been making a lot of profits investing with her a few months now.

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      @rolfmontalbano9002 Před 2 lety +1

      I was skeptical at first until I decided to try. It’s huge returns is awesome! I can’t say much

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      @thomasnewman6811 Před 2 lety

      @@enriquezjhn3418 You can reach her through tele

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      @thomasnewman6811 Před 2 lety

      Gram, with the username

    • @MrEjblanco
      @MrEjblanco Před rokem

      Y'all know eva Heather too!?!?

  • @jonmiller19845
    @jonmiller19845 Před 5 měsíci

    Why does this guy add an h to every s word he says. Shtop, shavings, shubscriber....