The Difference between Banks and Credit Unions: Part 3

[sunners16]

Lmao "My knees are burning!".

[ShroukiePoo]

this is awesome!

[qualqui]

Great vid!!! = )

[jackdtroughton]

I find it unlikely I could walk into my Meridian branch and say "Hey, I need someone to come volunteer at my community picnic, come on!". While I understand the poetic gesture being made, and that CUs may be friendlier services,, I'm trying to make an informed decision, and so that kind of info isn't helpful in terms of facts.

What would a more factual analogy be of the CU's role in the community BBQ?

[rouge002]

excellent series.. great work.

[5random1]

Great series.

Sure the current situation is having a very positive effect for CU's.

Not so, for "banks."

[ReyesX77]

damn i know what i'm gonna do. first im gonna own a bank and then keep all my money at a credit union

[CanadianQueer]

I work at a bank and know all the names of my regular customers. We are always trying to help them achieve their financial goals, as well as lend them a sympathetic ear when they want to talk. We frequently send out cards when our customers loose a loved one or become cancer-free. We donate to charity, put on raffles and barbecues, and raise money for community causes non-stop throughout the year. We are not the faceless, money-obsessed corporations you make us out to be.

[opal1sara]

This was a great informative vid! And excellently done, fabulous graphics!

[Childinfaith]

Distributism FTW

[elsietabatha]

This is wonderfully informative but extremely biased, so taking it seriously is difficult. A more just facts approach would have been nice.

[Denon333dash888]

I checked and I am thankful that credit unions are run by people, not governments, because if there is a loss in the CU, they handle it themselves. If the government owned CU owns it, all the CU has to do when they go into losses is get money from the government. And the money was taken by taxes itself. I'm not going to go into much detail since this comment can oly hold 500 charecters. :P

[walterbbutler]

Central Credit Union of Florida is worse than a bank!!!!! they charge a FEE FOR HAVING MONEY DEPOSITED OVER 13 MONTHS! Just google "CREDIT UNION dormancy FEES" "central credit union of florida walterbbutler" ..... and see ... or google "CENTRAL CREDIT UNION TOOK $ 277.86 FROM ACCOUNT FOR DORMANCY FEES" or "CENTRAL CREDIT UNION of florida FEES videos" or "CENTRAL CREDIT UNION of florida dormancy FEES videos" or "CENTRAL CREDIT UNION dormancy FEES"

[Vietnamemperor12346]

credit unions are so much better then banks

[Denon333dash888]

@Vietnamemperor12346 And which would be why some people would consider switching to them. And unless the bank does not catch up, it'll start to run out of business.

[Vietnamemperor12346]

@Denon333dash888

of course over 300 banks in the US are already failing.

[Denon333dash888]

@Vietnamemperor12346 Yeah...... Too bad Singapore imposes restrictions on the savings rate: The rates kinda suck. The only ones benefiting are those loaning: Some even get no interest whatsoever.....

[Dez131065]

i LUV theese vids. even though i know all ths stuff i like the animations

[shaolinlueb]

i have a local bank and they all know my name and are great with lending and have low to no fee's. i don't know of any local credit unions that do picnics. i still like your first video on this subject the best.

[zatoth13]

credit unions rule. obama is trying to kill credit unions by forcing them to give up their capitol and affect their ability to serve you. most credit unions fared well in the first part of the financial crisis but are now suffering because the government wants to kill your ability to save money or have options that protect your life savings.

[gurlsingerfan]

zatoth, exactly what is the rule change that Obama is supposedly doing to hurt the credit unions. Please inform...

[whitemisa]

this was soo fun !!!!

[basketballman321]

ha owned (lolz)

[ronvongroovemon]

sounds so nice, not true for me! My credit union ripped me off, $275 in fees! where do you get your information low fees my butt. .499 percent interest for my savings account. Some great interest rate. Maybe Bellco credit union should not call itself a credit union.

[marianne71]

Not that I want to take away from what you have stated but usually it's how you use your account affects your fees. I work for a CU and fee free banking is available as long as you use it appropriately.

[whitingc]

The U.S. side of it:

There's nothing significantly different from a Canadian credit union and an American one.

By the very nature of a credit union (being a group of people with some common traits such as location, industry, or anything else you can conjure up), finding a specific one that fits your needs is mostly going to be a local search.

more to follow...

[whitingc]

The most noticeable difference between credit unions and banks (large or small) is that credit unions can offer higher interest rates on deposits and lower rates on loans. This is possible not only because credit unions return the profits to their members instead of shareholders, but also because they're not taxed or regulated.

On the small scale, you will get more bang for your buck by getting all of your services with a credit union.

but of course that's not all...

[whitingc]

Because credit unions are not as strongly regulated, the risk for a large financial catastrophe is greater. It's the quintessential "loose cannon on deck" that could kill the crew of the financial ship (that's all of us, by the way).

The vast majority of credit unions are insured through a sister-program to the FDIC, so each deposit you make will not just evaporate in the event of a financial meltdown. However, there's nothing that stops credit unions from making very risky decisions.

read on

[whitingc]

Credit unions came into business as a sort of spinoff bank. They did many of the services that a bank does (savings, checking, loans, etc.) but since they served only a specific group of people, they were exempted from banking regulations and taxes. Now, many credit unions only require that you have a very distant relation to them (like being related to someone who worships in the credit union's town).

There are several U.S. credit unions that serve entire states and regions.

yay charactr lmt

[lovemycu]

I have to correct some inaccuracies is whitingc's posts. CUs DO pay taxes, property, payroll, local, etc. They do not pay corporate income tax because they are not-for-profit. They are fulley insured by and REGULATED by the NCUA. In fact, they have greater restrictions on them than banks in many ways. Earnings are returned to members becuase they are also its owners. No high paid CEO and a Volunteer BOD.

By the way, lots of banks' "ships" seem to be sinking. So which is the safer intitution?

[gurlsingerfan]

lovemycu, exactly correct....compare the amount the FDIC has paid out for failed banks (billions) compared to the amount the NCUA has paid out for failed credit unions (almost nothing), that should tell us the real situation on risk and stability.

[circutracer150]

What about us here in the states?? What should WE look for in a credit union?

I am 25 years old now, and wish I would have had this information YEARS ago!

ALSO, since it seems to me that you are involved somehow with these credit unions, please relay a message that their services and teachings are desperately needed in the US!

I have used banks until now, I will be forever switching to Credit Unions! Does this Canadian

affiliation have a US division??

[MyFreeCredit]

Entertaining to watch. Thanks for sharing.

[Fictlifi]

Does this information apply to American credit unions?

[45ShootingStar45]

That is really good! I really like how you explain it in a way a kid like me can understand!I really enjoy watching your vids!

[larissawalkiw]

Thank you so much for the kind comment! I'm glad the videos help you understand (making them helped me understand, too!)

[mcrowley1977]

Great job on all your videos. I've worked for a credit union for 8 years and hear everyday how our members will never use a bank again because of the service they receive. We do many community activities also. Thanks keep up the good work.