Credit Unions vs Banks - Class trends

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:So my DD was doing a paper for school, and we read that most users of credit unions are lower income than the typical bank customer.

We are a boring DCUM family making $300k so not rich, but I think more income than average banking user? And we always use credit unions since they have lower loan rates and better savings rates. But talking to a teller there i definitely got the impression we were an outlier as more wealthy than most customers.

I can definitely see a full service bank if you are in private banking scene, but if you just have a checking account and take out occasional car loan or whatever, why are people choosing banks overs credit unions? Or is the stats I see just messed up somehow?

Neither of those are true. The best savings rates tend to be online banks and the best rates tend to be either specialist companies for mortgages or manufacturers with captive lenders for cars

Okay? But if your manufacturer isn’t offering a promotion rate, credit union is usually the best rate.

Online banks, true they offer better savings rates often, but if you want CD credit union will usually be better. Banks want hot money, they don’t want to lock it up at high rates and hurt their profits.

It looks like Penn Fed has the lowest advertised non-manufacturer rate right now at 4.75. Honda motor finance is anywhere between 3.9 and 1.9 depending on the model. Subaru is 0 to 2.9. BMW is mostly at 3. If you want 0%, you have to stalk deals, of you just want a point better than credit unions, it's not hard to find

I don't think rate to rate is the only valid data point here. Credit unions will work with you, especially if they know the paycheck from the related employer is steady and legit. You can get better rates if you don't have perfect credit and maybe don't qualify for Honda's rate, etc.

[Anonymous]

Excellent customer service, lower fees, better loan rates and top notch credit card fraud monitoring. Credit union.

Terrible customer service from previous big bank credit card. Higher ATM and checking account fees for someone else’s profit. No thanks. Exception: still like local Burke and Herbert.