I love my credit union - a safe port in the storm.

[lostnfound]

A financial advisor recently had the nerve to suggest it would be safer to take money out of the credit union, so I did some checking:

1. Credit union money is insured by the NCUA -- equivalent to FDIC -- to the same tune as regular bank accounts.
2. The two-thirds that is out on loan: Our credit union loans only to members, and on the home loan side, 95% is fixed rate mortgages for 15 or 30 years.
3. The one-third that is liquid is in CDs and other conservative investments -- no derivatives, nothing fancy.

It's small, and the members aren't going to all default on their mortgages at the same time. Even if 10% were in default, that's still only 6% of the whole value in the credit union.

The guy in charge doesn't collect $18 Million in bonuses for 6 months of work like Paulsen did, nor $20 Million like the WAMU CEO did. I bet he can count the number of cars plus number of houses that he owns on one hand.

I love credit unions.

[flvegan]

1. I've been looking into my area credit unions for the last couple weeks.

Come October, I think I'm jumping.

[NNN0LHI]

2. The Credit Union I used to belong to had a problem with embezzlement not bad loans

Shut them down for a while.

Don

[SoCalDem]

3. and we love our little Provident bank..

They hold the mortgages they make.. you can call the branches directly, and they recognize your voice on the phone:)

[old mark]

4. We have been credit union members for many years.

They are very safe, and I would not use a bank again.

mark

[Ohio Joe]

5. Mine got forced into a bank

I was with the Nationwide Federal Credit Union. They decided it needed to become a bank so they put it to a vote of the members. The info they sent out though, made it clear that if the vote went against them they would remove the NW name, not allow it to be on NW property and not work with them in any way in the future. It would have killed the credit union so there was really no choice. They really suck now.

[lostnfound]

17. I don't know about your case, but the banks have been targetting credit unions

to try to eliminate the competition. They have a very coordinated effort going on to lobby against them and to try to create momentum to converting them into banks etc.

[Ohio Joe]

33. In my case...

When Chase bought out Bank One (because it was failing), a lot of upper management from Bank One came to Nationwide Insurance (this is here in columbus Ohio) and began their same policies that failed at Bank One. Early on, it was clear they wanted a Nationwide Bank but there was a lot of resistance from middle management (people that had been with Nationwide for many years). One by one, the existing middle management was replaced with people that would simply go along with whatever the upper management wanted until no more objection remained. It was just a matter of time and poof, credit union gone and the new Nationwide Bank is in place. They make it clear they could care less about 'people' banking there, they really want businesses doing their banking. None of the regular people at Nationwide are very hopefully about the banks prospects.

[Blue_In_AK]

6. I love my credit union, too.

I've never had any trouble getting a loan when I needed it, and when I fell behind for a little while several years ago on my Alaska USA FCU Visa card, they worked with me until I got it caught up, didn't raise my rate (10.5%, which is what it still is) and didn't report me to any credit reporting company. I love, love, love them.

My youngest daughter is now working in their "special collections" department, doing exactly the kind of "working with" that was done for me. She's pretty busy these days.

[hobbit709]

7. Yep

No monthly fees, new checks cost half as much. If we goof and overdraw the checking accounts they transfer from our savings account and only charge $4. Their lobby and drive-through hours are longer too.

[sarcasmo]

8. I would agree, the safest place for your money at the present time.

[TNDemo]

9. I think about as many credit unions have been shut down this year

as banks. However, I would think they had safer lending practices.

[Mme. Defarge]

10. Check out your financial institution at this web site ...

http://www.bankrate.com/gookeyword/safesound/ss_home.asp

[Blue_Tires]

11. +1

[Rowdyboy]

12. My worst encounter with my credit union is better than my best encounter with my bank....

I haven't done a bank loan since 1978 (joined the CU in 1978). Don't expect to do another bank loan this lifetime.

[SeattleGirl]

13. I just opening a checking and a savings account at a credit union.

I do have an account at a bank, but I think I'm going to close that one.

[Norrin Radd]

25. BECU? Just did the same thing.

Don't want to have anything to do with JPM Chase.

[ConsAreLiars]

26. BECU may be the exception when it comes to credit unions.

Had a couple of really shitty experiences with them and the fact they use their income to run TV ads is certainly one more reason to think they are being controlled by conmen who are just running a scam. Be careful!

[Norrin Radd]

28. Is there a better one around here that you'd recommend?

[ConsAreLiars]

30. This is just personal experience, not some financial adviser stuff,

but I use Watermark and described why I am happy with them in another post. Both have the same Bankrate.com rating of 3, just OK, nothing notable. Maybe there is some other CU around here with better numbers, but in terms of my person-to-person encounters, BECU was more impersonal and even hostile, like the commercial banks, and going to Watermark was like going to family.

[Norrin Radd]

32. Thanks

[SmokingJacket]

14. My savings are in a CD in a credit union.

I feel pretty safe. I could be wrong, but I'm not going to go withdraw it.

The people who work there wear sweats and have beards! I love it!

[dkofos]

I only bank at credit unions. I gave up on banks back in the 80's.

[knitter4democracy]

15. We stopped dealing with banks years ago.

Michigan's a safe haven for credit unions, and they're the only ones we deal with. We get the best rates, no crazy fees, and they are the easiest to deal with, hands-down.

[NanBo]

16. I'm very pro credit union

Have been with mine for many years. Had a mortgage with a bank and they screwed up my taxes (took out the escrow and then didn't pay it) and other things. So refied with my credit union, even paying an extra 20.00 month to ensure that the credit union would never sell the mortgage and I would only ever deal with them for 30 years. It is worth it to me. I can talk to them in person when needed. They don't charge for services.

Just make sure it's a fairly good size CU--not one with $300,000 total assets! Those are the ones that go under and it's just because they're so small they have no professional oversight.

[lostnfound]

31. Come to think of it, we wouldn't be in this mess if people dealt only with credit unions!

No profit motive, no ties to speculative trading of mortgages etc.
It is very unnerving to see the banks merging with the brokerages.

[MissB]

18. Five years ago, my credit union wouldn't do a jumbo loan for me.

We were in the process of selling a house, but possibly needed to buy our next house outright, so we went through the motions of taking on the new house as a completely separate mortgage. I went to our credit union, since that is where we did most of our banking.

The loan officer told me that they didn't do jumbo loans (and ours was barely more than the minimum, but still it was within the jumbo loan definition). I pressed a bit, and he came back with an answer a few days later - their investors simply weren't willing to go there.

In the end, we didn't need a jumbo loan. And I feel great about the credit union's policy. It's kept them in a good, solid standing.

[Critters2]

19. I just invested some money with a fund that loans money to churches

for building programs, "green congregation" or accessibility renovations and the like. Only a small percentage of its assets are loaned out at any one time, and loans are only made when churches can demonstrate their ability to repay through capital campaigns, bequests, etc. Churches must put up property as collateral for loans. There are only two kinds of investments available--demand notes (basically a money market account), and CDs of varying lengths of time. And no, the CEO isn't making a brazilian dollars.

It won't make me rich fast, but it's adding to my income, and doing some good at the same time.

[Jade Fox]

20. I put all my money into Credit Unions twenty years ago....

during the S & L crisis.

[Incitatus]

21. I was a WM customer and stockholder.

I will be switching to my companies credit union asap.

[bluesmail]

22. I've been a member of a credit union, in Oregon for at least

Thirty Years. I've had moments where I thought about it's 'credibility'. So far so good. If you can become a member I recommend a Credit Union. Years ago the CU's wanted to be on an equal basis with banks, but politicians were against it. IIRC it was around the time of the Credit Card Legislation that said it's OK for CC's to claim bankruptcy, but not the consumer. Ain't laissez-faire great if you're not a 'taxpayer'?

[eridani]

23. I had an account at a church credit union in the 50s when I was a kid

Whenever I've had savings, I have kept them in credit unions. I have only taken loans from credit unions. Never a problem dealing with any of them. No crazy fees, and loan rates are lower and interest rates higher than with regular banks.

[ConsAreLiars]

24. Been with my CU for a long time, but in recent years had to put them to a test.

The reason for joining should be obvious to anyone - non-profit or for-profit (theirs, not yours)? Which would be most likely to treat you as prey?

But the real test came when dealing with my mother's estate and and bunch of crap that came later. I went in saying "help me" and they did. No long lines and whenever some obscure issue came up they worked together with me to solve it and did. No question about how much they would gain, just being helpful as most of us would be to one another. They even dressed like ordinary people. Casual dress, no power suits and high-end make-up clowns.

By contrast some of those financial dealings took place with commercial banks, WaMu, among them, where some dumbo jocks in suits were trying to present themselves as uber-gods who made demands rather than tying to offer assistance.

The point is simply that, apart from (or arguably because of) the the fact that one is non- and the other is for-profit, they provide very different experiences (at least in mine) for those who interact with CU's as members of a community, or as with commercial banks as supplicants. Take your pick. For me, I would rather be a member than prey.

(edit tiny typo)

[depakid]

27. MIne is GREAT

Always very helpful, rarely ever crowded, and great interest rates on savings.

[Mojambo]

29. Been with my Credit Union since 1997

Before that I was with 4 banks over 5 years.

It's just night and day.

[AirmensMom]

34. Love mine, too.

I emailed my account manager (yeah, I can talk to a person -- the same one every time) last week because I was nervous. She emailed back within just a few minutes to tell me why I don't need to worry. Next day, the president/CEO sent out an email to everyone explaining why our CU is in good shape.

Your Credit Union has recently received its 10th consecutive Bauer Financial 5-star rating, its reserves are at an all time high and its earnings outpace projections.

In an industry that is currently facing challenges, your Credit Union has managed to avoid many of the practices that have hurt other financial institutions. For instance, xxx CU has not participated in subprime mortgage lending. We pride ourselves on having a conservative lending policy while still offering our Members great rates.

Your Credit Union is fully funded and because of its ability to steer clear of the current turmoil, has the ability to fund loans. Your Credit Union is operating as business as usual in an unusual economy and is here to assist you with your financial needs, whether it be deposits, loans or services.

As a reminder, your funds are federally insured to at least $100,000 by the National Credit Union Administration (NCUA).

Works for me. :D