OT Banks vs credit union advice form oldtimers wanted

Yeah I asked a few quesitons and found all that out. Essentially the share holders are the account owners, so they dualy own the union and want no fees. You have to buy 1 share per account ($10) which in the big picture to me is irrelevant.

Hi All

I dont know if things have changed, but in the past, Credit Unions
and Building Societies, have collapsed from time to time, tying up
account holders money, while things were sorted out.
it might be different now ?.

Good Luck
Daza

It also used to be that electronic deposits (e.g. your salary) could not be transferred to a Credit Union.

Anyone remember pyramid???

I have found with my bank (which one?) I politely tell them that I don't want to pay fees, and they usually agree. When a fee apears on a statement, I take it in and they reimberse it.

I'm not sure hat sort of security is offered by the creditunions etc these days, but I would rather owe them money than they owe me (not going to happen unless 6 lucky numbers come up anyway)

Cheers Andrew

It always amuses me when during a discussion about "where do you bank?", somebody will reply with "I bank at xyz credit union"...

hahahahaha......I say to them (after I stop laughing), that you can only "bank" with a.........wait for it............BANK!!!

It's a bit like when you're talking to someone about "what sort of car do you drive?" and they reply: "a Dunlop 26 inch push-bike with 3 speed Stermy-Archer gears"......... IE: they're not on the same page!!!!

Now, I've got nothing against Credit Unions as such; they perform a necessary function in the financial industry. However, as a Business Banker of some 37 years with a major Bank, I can tell you now how they'll give you a rather funny look when you go to them and ask them to put in place a Foreign Exchange Forward Hedging Agreement or provide you with a $2m Flexible Rate Bill Discount facility so you can expand your business etc.

Use Credit Unions by all means. They do NOT provide the Tier ONE level of security for your deposit funds, but the chances of one tipping over is very small in this country. Yes, there was the Pyramid B/S catastrophe many years ago which some people still remember, but that was a circumstance which I seriously doubt would/could ever happen again.

You pays your money............you takes your chances..... Buyer beware.

Not to forget Roachie that Credit Unions need to bank with a bank!

That will surprise many I'm sure!

Thats actually not quite true anymore.

A few of the larger Credit Unions have joined the cheque clearing association , and are sufficently large enough to be on their own.

Its true though , the vast majority of CU's hang off the back of Banks.

Hi Flappa, I do stand corrected some, but only a handful, have exchange settlement accounts with the Reserve Bank.

Fair comment Motherhen,

You've madeyour choice based on your circumstances. I alluded above regarding their (ie: credit unions in general) limitations as to what facilities they can provide.

You have also mentioned "higher interest" (that they pay on your deposit funds). They _HAVE_ to pay higher interest because they're unable to procure their funds on the open cash market at the same rates the banks are able to obtain. Why?.... Because they're not quite as safe as a bank. Banks MUST "tie-up" a percentage of the funds they hold in a system controlled by Reserve Bank. It is this system that GUARANTEES that your funds are 100% safe when you have them with a bank.

As I said above.....You pays ya money.....you takes ya chances.

I'm not sure how long ago the nasty witches at the bank were rude to you (and I don't know/care which bank it was); but I would imagine it was several years ago. These days, the silly-old banks have come to their senses and realised that in order to have happy shareholders, they MUST get the other 2 parts of the equation equally correct.......and that starts with STAFF. If they can get/keep happy staff, then those staff will treat the clients in a more professional manner (keeping them happy) and that will lead to happy shareholders. As much as I hate to use one of those current catchy/wanky terms.....it really is a WIN/WIN situation........

Have to agree with Roachie
Having used both a CU and Banks in the past, I must add that I found most transactions with the credit union came with 'conditions' or could not be done ect ect, always seemed a hassle. I find with the major bank I am with and have been for a while, if you talk with them and structure your banking to suit your needs you find the fees are minimal or none at all. I have credit facilitys, morgage, saviings and everyday accounts and pay no fees and with the Discount on interest because of our package, they are in line with CU's. Plus when I was OS last year and had a Credit Card issue I could talk with someone on the phone 24hours a day. Plus they have aggrements with OS banks too so all my transactions were fee free in london ect as well

I will Stay with my bank. My 2c worth

Cheers Stefan

Hi Roachie

Yes it was a few years ago, and i won't go into details or a bank bashing exercise here. Reassuring to hear that banks have realised that without customers they would be no use to their shareholders. Needless to say i never bought shares in any banks.

Nothing against local branch customer service staff - they always gave great customer service. It was from further up "we don't want to deal with farmers; we want our shareholders to see us dealing with - " (i can't remember his exact words for glossy high profile companies). Then a few years later, they were advertising on telly as the bank that has always backed farmers - HUH! Sure hope it is not your bank (i can't remember what bank you are with).

Regards, Mh