The Difference between Banks and Credit Unions: Part 1

[NickiBaby1807]

Thank you very much! I did a short essay on Banks vs. Credit, and becuase of this video (Where i got most of my info) I got an A! Thank you so much!

[TchiSeenTapAndNap]

This was ridiculously cute. I loved it.

[IthacaStLondon]

@TchiSeenTapAndNap I completely agree.

"Oh Canada..." :giggle:

[doinkusamongus]

Honest question. Are credit unions FDIC insured? Last I heard, the answer was NO. Not that it might make a difference in another '08 type failure but then it might. Thanks to anyone who can answer this here. I will also make some calls myself. Thanks again. I'm seriously considering dumping Wells F and going credit union. I already dumped Chase. Didn't move Chase to Wells, BTW. Had Wells and Chase for years. Now, just Wells.

[CorticalCirclet]

@doinkusamongus Credit unions are not insured by the FDIC. However, they are insured by the NCUA, which is likewise backed by the full faith and credit of the United States. Both the FDIC and NCUA insure depositors up to $250,000, and due to 2010 legislation, that amount is not scheduled to change. I'm also considering switching to a credit union, and as far as I can tell, their deposit insurance guarantees are effectively the same as any bank's.

[doinkusamongus]

@CorticalCirclet Thank you very much! We'll be switching then right after the holidays.

[Ibreitenbach]

In my experience credit unions are more expensive. who voted for that? maybe they need more members. fact is whether your a credit union or a bank you both report the Federal Reserve which is a central bank. The Federal Reserves reports to the IMF "International Monetary Fund" which is the central bank for the world. If you don't like banks and are tired of being controlled by money I suggest your start with the head of the dragon.

[MoppyandMe]

This is so cool.



[MrMetinnn]

Credit Unions are not fail safe. 24 credit unions have failed in 2010. Thought you should know...

[DrEvilVader]

@MrMetinnn And banks are? Lehman Brothers (600 billion $ in assets) bankrupted in 2008. Don't talk about fail safes because terms like ''fail safe'' and ''too big to fail'' do not apply in 21st century economy (in 20th sure, but not anymore)

[Fireclimbing]

If you were wondering how to change things this is a start. Change your bank

[stevenfries84]

That is a REALLY GOOD VIDEO!!! I LOVE IT!!!

[RedMclaren]

This really helps explain things with humour! Thanks!

[Pher0cious]

Love this video

[darkmarine123]

Ive always known banks to be a way to make money off the unintelligent masses, but I never knew credit unions existed. Honestly I never thought to bother asking what one was. Thanks for sharing this bit of information.

[sfanaranyc]

Take part in the peaceful revolt. Get free from banks so we won't have to pay ever again another 700 billion bailout (bail-out NOT loan!), extorted by threatening our government with financial crisis if not issued! THIEVES! Why not a loan? Even a 10 or 30-year 0-interest loan would have guaranteed to get back (eventually) the $700 billion we're paying with our tax money! And now bank want to charge 5 dollars ATM fee? What? Enough is enough!

YT doesn't allow links so:

facebook-DOT-com/Nov.Fifth

[demonella]

Where I live, banks compete for customers by offering lower long-term fees, higher long-term interest rates on your savings and better loan deals, rather than by giving you an ipod. I mean it's so easy to change your bank, even change over your mortgage, that they really fight to keep you by offering you a decent deal.

[jmix6]

Thank you for the animation... it made it alot easier on my brain... I'm switching yo a credit union.. bank of America is killing me.

[Tenchcnet]

A new age is upon humanity.

[xenonman]

At least in the US, there is NOT the slightest difference between banks and credit unionn!

Both lobby Congress against consumer interests.

[hectorsxvideo]

Brilliant video. So simple, yet so informative. Great work !

[Drweavil]

I've been a credit union member for over 25 years now... they are the only financial institutions I trust.

[Slimdawgc]

Brilliant video.

[JJNoire]

I love my credit union!

[Elmware]

I am so glad that I ditched my bank and joined Coast Capital Savings here in BC. I got sick and tired of CIBC robbing me blind and they didn't even give me an iPod, calendar or toaster. Just service charges and overdraft from their service charges. That's one thing I don't miss anymore. The onetime investment of the $5 share is well worth it compared to the service charges. Plus I can use any "Exchange" ATM for free.

[CanadianQueer]

I think the reason I will never bank at a credit union is that they are so darned inconvenient. You can't bank online with a lot of them, good luck finding one of their ABMS if they have them at all, and have fun getting screwed if you need to get into a branch and you're out of the city, because your credit union barely has a branch network, if they have one at all.

[Elmware]

@CanadianQueer You can use any "Exchange" ATM without getting dinged. Make sure the ATM does say "The Exchange" on them. You're probably right about some not having online access, but I'm not sure how others are ran, but CCS does have online banking from their site. In fact CCS has an ATM locator on their site too. They show all the "ding free" ATM as well as their own.

[KamisamanoOtaku]

Banks are a BUSINESS and so making a profit is their job. Their desire for profit requires they retain customers, so if a bad bank remains in business it is because of the idiots that keep it afloat.

I've used banks and I've used credit unions. As a whole I am not fond of either.  I was leaning more towards credit unions until I watched the video. I certainly expected it to contain bias (what doesn't?) but this felt like pure propaganda. The animation was good quality, though.

[bomberfun1]

credit union suck balls, their assets are tied to futures and price is determined by the instantaneous equilibrium between the forces of supply and demand among competing buy and sell orders on the exchange at the time of the purchase. For a credit union it is done by compromising interest rates. Service is substandard. Return on margin is often used to judge performance because it represents the gain or loss, which credit unions have in abundance, though deficits mostly prevail.

[LexieEphraim]

This was awesome! Thanks for the easy to understand and QUICK vid! And then the animation was AWESOME! I loved it!

[WingsAndRevelations]

SWEET! (I signed in just to say that)

[CCSFCU2010]

I work for a credit union and I have been showing this video for years after my son accidently found it on google!! I usually show it to students but adults love it too!!

It is a great way to illustrate the benefits and differences of a credit union!!

Thanks for making my job explaining this easier!

[Denon333dash888]

Odd, sure, the banks are there, but since there are credit unions, wouldn't people just go to them instead? BTW, who are they run by?

[amnesiai]

i love you

[follayart]

...i think i love you lol, u saved me!! But seriously this is awesome

[mesinku]

a very nice introduction of credit union, thanks larissa by cu-semangatwarga.co.cc

[cmritchie04]

Are credit unions insured by FDIC?

[Elli21486]

Ok, I got a question. My bank is a bank, there is no doubt about it. However, a few months ago, I got a letter saying (not in these words but this is very close), "Every year, we choose members to elect officials into our board of directors. These three candidates are running for the position and we need you to vote for them." Now does that make them a credit union disguised as a bank or a bank trying to be a credit union.

[syprix]

YOU ROCK!!!

[muhablaha]

Good job! Nice video, clear explanation.

[djwozzawoz]

yery good, simple but effective, well done Larissa

[SooHax]

Great video Larissa, will be showing to kids at a local HS in New Mexico tomorrow!

[philipjamesbryan]

I Love You!!!

[TRGarbacz]

This is very good.

[millball]

But the CU end up lodging their monies into a bank anyway...

sooo... yeaa... :|

[bmc510]

@millball nah CU's have no Bank lodging thats the dumbest thing I ever heard. they keep the money with themselves, or else why their money be insure by the NCUA, if they were banking after you put money in it would be secured by the FDIC. Either way both are secured federally CU's are a better deal. If CU's did bank Banks wouldn't spend so much money lobbying trying to illegalize them. please know your facts before you speak. Ur just mad cuz ur the dude with the iPod that got OWNED!!!! AHAHAHAHA

[millball]

@bmc510 I'm sorry, do you work in a bank?

[bmc510]

@millball nah I'm a CU member and I ask questions. Like a normal person.... Bank lodging=absurd.

[millball]

@bmc510 Well, less you work in a bank / credit union; don't assume you know everything.

[bmc510]

@millball wow that's not a good response...

[themagicofcoupons]

thanks for sharing

[Visfen]

A credit unions is a currency. They issue notes of exchange, which is a fancy way of saying money.

Having a currency backed by everything and anything doesn't work, it becomes a basis for ridiculous credit expansion.

[migu9999]

rothschild family have 500 trillons dollars , they true are the masters of the world.the own all the central banks. they decide who gona be the next president in all nations around the world...federal reserve is just another bank they own...they make money out of thin air...

[toalexg]

Awesome presentation...Credit Unions rule.... you pay lower interest on loans and get paid higher interest on savings... credit union over banks....any day...

[drpepperxl]

false. Banks have better rates.

[tsentry]

Credit Unions don't pay income taxes but want to act like a bank. Obama will soon make them pay taxes and change.

[wildboy789789]

i thought credit unions didnt give you intrest on the money you loan them

and banks pay you for having money in there

if credit unions will pay me for my money then i will gladly switch

[killershrew1]

Credit unioins definitely pay you interest on your deposits (typically better than what banks pay). I know... I belong to a credit union!

[drpepperxl]

What world are you from where credit unions pay better interest rates? Give me a break. It's the worse place to hold your funds. They are technologically disadvantaged. At my credit Union where I WORK, Online banking was introduced last year.

[px403]

@drpepperxl At the credit union I just joined, my interest rates for savings are more than twice as high, and my credit cards APR is less than half of what the numbers were when I was at wells fargo. Also, what part of the world are you from? The major credit unions out here have had online banking for at least 5 years.

[outraged13]

@wildboy789789

I can't speak for all CU's, but the one I'm most familiar with does issue annual patronage and dividends both on interest earned and paid. "Members" are like "shareholders" -- your membership shares entitle you to vote in Annual General Meetings (AGM) and reap some of the rewards (profit sharing).

[marvelousmax3000]

Owned... Lol that was awesome

[jin3780]

Excellent video and helpful...thanks!

[txagvero20]

VERY helpful!! :) thank you so much! great video and good info. I appreciate it :)

[keepquite88]

pretty good vid. u are cool

[HersheyHarrisburg]

Can someone please tell me what software/program this video was created in? Adobe Flash?

[larissawalkiw]

All the animation was done in-camera. Final Cut Express was used for the editing. Hope this helps!

[tomofnorthcal]

great job Larissa

[larissawalkiw]

Thanks, Tom of North Cal!

[purple4mee]

I work for a caisse and we were shown this video today ... it was the best part of the presentation! Excellent job!

[Yeshuamysavior1]

I love this-I was clueless-NOW I know! such a cute video-very well done and easy to understand-even for me!

[skelta63]

Quite ironic to see that you have a competition on your homepage to win $50 iTunes card.

[larissawalkiw]

Not at all! You don't have to open an account to be part of our monthly Y&F draws. It's just a perk to being a part of our young online community and staying in the know when it comes to money saving tips.

[econguy87]

nice video

[jmalcodray]

Not sure what so many posters have missed -- this video is an awesome piece of marketing. It conveys a message in a creative way -- one that is easy to understand and digest. Brilliant.

And if you're still not sure how banks have taken advantage -- pay attention to the banking crisis here in the USA. What about the consumer Card ACT that has been signed into law -- brought on by credit card lending practices (fees, etc.) practiced by banks. Yes, credit card use is a loan! Wake up.

[larissawalkiw]

Thanks for your input!

[HapaLife]

Two-dimensional indeed, and biased much? 1 star.

[jerrynuevo]

Way over simplified...but informative and cool.

[TTTopGun]

1) The way credit unions operate is not necersarily better than banks that is a false sense of security, 2) Waky waky you are niave to think credit unions are somehow for the people rather than a small group of investors.

[Yippykaiyay]

my credit union has a higher interest rate, but the one that pays me. my bank only gave me 3 cents for 1000 dollars. i switched and now i get 3 dollars for 1000. it may seem dumb. but it all adds up.

[jfs1988]

This must of been a very fun school assignment. 5 stars and a favorite.

[wilddthang]

im a high schooler and we were showed this in our personal finance class at school. we went on a field trip to a credit union and this is what they showed us :)

[larissawalkiw]

That's awesome! Thanks for letting me know - it's always cool to hear how people come across this video!

[jbloss2]

@larissawalkiw

Just saw this included in a presentation at a credit union conference in Las Vegas - Great job.

[kzeiser]

Thank you for making this.

[bigdogT15]

owned! LOL

[msbedorian]

This video is not true. The producer lumped all types of banks into one category - very misleading. Mutual Savings Banks do not have shareholders. They are owned by their depositors. The Boards are made up of people in the community and have no financial stake in the bank. Decisions are made based upon what is best for the communities these banks serve. AND, they pay federal and state income taxes which credit unions do not.

[judgesingleton]

So many Mutuals and Savings & Loans went public and it was wrong. NO! Stop! Look Reason! People helping People is the key. Not Wall Street Greed

[judgesingleton]

Don't even get me started with the Lincoln Savings & Loan Scandal! Credit Unions work!

[Lamarrxyz]

Love it! Clear, informative, refreshing, and to-the-point.

[kayjames888]

That was kewl.

[basketballman321]

i like the very last part...its funny!!! LOLZ

[amuxfree]

LOL! That was awesome! Very good presentation. And simple to understand!!! Thanks :)

[viviananderson]

Very nice!

[ronvongroovemon]

Sounds so nice, but just not true. I was a member a Bellco credit union for 20 years everything was fine until one day I made a mistake. I drafted a check from the wrong account and my checking account went bust totally my fault! But instead of notifying me they just paid it and did not contact me. after that every purchase I made caused a $25 overdraft fee for the next 21 days. They moved funds from my money market to checking but only enough to keep my checking balance at 0 or below.

[sevlevboss]

I've had the opposite experience with my Credit Union (Apex - in Calgary). They have actually called me when a cheque should have bounced, then held onto it until my direct deposit paycheque was deposited.

I've been a member since birth (36 years) and will never switch to a bank.

[judgesingleton]

Things like that can be fix and worked out. Sorry. Been there done that! I feel your pain. But the Credit Union is the Key to saving our world. We all need money to live so lets do it our way. Not Wally World Street Way. I am not got to pay the Wall Street babies retirement fund. No. simple is as simple does. People Helping People. Credit Unions is the way to go So sorry Wells Fargo, you lost this MBA to two causes the young and there money. These beautiful kids in the street! Why?

[ronvongroovemon]

Boy was I mad when my monthly statement came. I went to my credit union, I said I know this is my fault but why did you not call me. The lady behind the desk could not wipe the sadistic smile off her face. She said your lucky, this happens all the time, some people have seen more than $1000 in credit union fees. Im like, and you dont call them? She replied we have too many customers we dont have time to baby sit people like you.

[Crickettedog]

@ronvongroovemon: Sorry about your terrible experiences, but you can report them. Credit Unions do have an organization over them. Each credit union has laws that they must abide by. When did this happen to you?

[ronvongroovemon]

At that point she said you dont appreciate me and she added an additional 137.5 in fees to my account!

Do not believe that just because the sign out front says credit union that fees will be fair. It seems to me that my X credit union are just a bunch a thieves who have no oversight what so ever!!! Worst of all in there ads, the thing they push the most, low or no fees! liars liars liars!!

[cdelliott7]

Hi, my name is Sandra Sagehorn-Elliott and I am the VP of Customer Relationshp Management at Bellco. I'm sorry to hear about your experience and would love to have the opportunity to work with you personally. Please contact me at our main number, 303-689-7800 and ask to be transferred to me. I hope to hear from you soon.

[pisanghangus]

u can be a shareholder of your bank

[MyFreeCredit]

Nice vid. Thanks for sharing.

[franckmercado]

the noice at 0.15 is distracting

[gaguy1785]

this video isn't exactly accurate

[sks0473]

I was at the CUNA ELL seminar in Tempe, AZ a few weeks ago. During one of the sessions, they showed this video. So glad the word is getting out!

[innkeeper2097]

This video is great. I recently heard your story of why you did this (and other) videos for your CU and I salute you! Job well done!!

[epiphany55]

Stand up against the commercial banks! Join a CU!

[gopconservative78]

Remember the Banks have to pay taxes and Credit Unions do not

[innkeeper2097]

because cu's are not for profit, they can help the little guy by providing lower rate loans and higher rate savings and other free services

[darkmorpheus31]

"gopconservative78 (2 months ago)

Remember the Banks have to pay taxes and Credit Unions do not" - Credit unions do pay taxes, including property, local and employer taxes. However, they are exempt from federal taxes. By law, credit unions are exempt from paying income taxes at the state and federal level.

[darkmorpheus31]

Credit unions do pay taxes, including property, local and employer taxes. However, they are exempt from federal taxes. By law, credit unions are exempt from paying income taxes at the state and federal level." --- This is in respect to credit unions within the United States.

[blackmetalurgist]

OK, I agree with most all of it BUT, my credit union screwed me on a car loan. In my credit report I had one "no pay" on a medical bill for 100 bucks that I never received a letter on or a phone call on and I got hit with a usury rate of 10.8 interest rate on a used classic car!  Now that rate is frozen and they will not change it because I have other credit problems but when I took out the loan I had perfect credit all but that one medical co pay I never received.

[innkeeper2097]

and your rate at a bank may have been a lot higher or maybe no loan at all!

[1boidae]

This is GREAT!

[mattrexchastain]

Incredibly brilliant yet simple, clear and entertaining way to tackle an otherwise boring subject. I'm in advertising in a small town in Georgia. Mind if I completely rip off your idea for our local credit union?

[larissawalkiw]

Um, sort of.

[sks0473]

I could watch this video every day! It is brilliant!!

[aydansmommy23]

I have belonged to a small credit union my whole life, and when I moved I banked at a big bank. I HATED it. I went back to my credit union right away. I now work for the same credit union and would say that I would never "bank" anywhere else. We honestly have the members best interest at heart.

[hgflathead]

Credit Unions should be convicted of fraud. They promote IRA's earing a dismal 5% that just beats inflation. True wealth management must be done at a bank because they have the ability to offer more than just credit cards auto loans.

[Zerbet]

Yes, that apple sure is a different color than this orange. Tastes different, too - must be fraud to call them both fruit!

"Wealth management" and consumer financial services like auto loans and credit cards are fundamentally different things used to meet different - some might even argue opposing - purposes.

The suggestion that offering one rather than (or in addition to) the other constitutes some kind of "fraud" is ludicrous.

[pinkie4747]

The word "fraud" in this case is more than a misnomer; it's riduclous. As not-for-profit cooperative where members are part owners, I guarantee that no one there is trying to use "deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage." And if rates are all you care about in life, you should put your money elsewhere.

[FriendlyJP]

The board of directors in a credit union has a lot of money to spend. It feals a bit like a government; those people will have the opportunity to spend the money for expenses (phone bills, trips, cars) since it's not really theirs. But I still feal it's the best way to go. At least, some of it comes back to the members.

[Zerbet]

Please share the model for a method for providing modern consumer financial services that does not require the payment of bills.

Credit unions in the US are one of the most highly regulated industries in the world.

In nearly 30 years of intimate association with credit unions all over the US, I can count the number of directors who heedlessly wasted Member assets on one hand - and the number who succeeded unpunished on "no hands."

[pinkie4747]

Boards of directors for most credit unions are unpaid volunteers. To say they have a lot of money to spend is illogical. They carefully allocate resources for the benefit of the business and all of its owner-members. Since credit unions are not-for-profit cooperatives, all profits are returned to the members in the form of better rates and improved services.

[mohammedteddy]

Banks suck. I put Jihad on them right now!

[xenonman]

...Except for the fact that in reality there ain't one iota of difference (in North America anyway) between the two!

They're both indifferent, self-interested financial service rackets.

By the way, the employees at CUNA Mutual didn't appreciate the jerk that you Canadians sent down to us for CEO, that idiot Mike Kitchen!

[larissawalkiw]

Hey xenonman!

I believe the difference is more pronounced in Canada.

To give you some background info, Canada has only five chartered banks -- all of which offer no free services to anyone. In fact, there is no other credit union in Alberta offering a free chequing account to anyone under the age of 18. This is a huge differentiator in Alberta and Canada.

As for CUNA Mutual politics and the like -- Relax! I'm just a kid with a YouTube video!

[Sasam29]

really nice thanks

[AdultAdditude]

All you people have great adult additude

[leelefever]

hmm. looks familiar.

[FuzeDigital]

Are you concerned that the approach you appear to have developed is being used here?

[ldb9405]

This is brilliant

[kelvinatornz]

LOL very nice video!

"owned." =D

[reducisiotto]

Now... this video is AMAZING. Great job Lars. love

Matteo

[yuriwalkiw]

Awesome video!