I was an account-holder with US Bank for eighteen years. I paid an $8 “service charge” every month, as well as many other fees. Worst of all, I had to put up with truly awful customer service. Many people have similar experiences with US Bank. Yesterday, The Consumerist posted a story of one man's encounter with US Bank customer service ineptitude. It's typical of stories I hear.
I finally switched my accounts to a local credit union last May. I delayed making the switch for years because I thought I had too many automatic transactions that interacted with my US Bank account. Here's how I finally made the switch:
- I withdrew several hundred dollars from US Bank and used this money to open an account at the credit union.
- One-by-one I transferred any automatic transactions to the new account.
- When I was sure that everything was working as intended, I went in and spoke to a banker. I took all my money in cash and then immediately deposited it into my credit union account.
The process was easy.
In retrospect, I'm not sure why I waited so long to switch. At the credit union, there are no fees for anything. (Well, there's a $1 fee if I overdraw my checking account and they need to use money from my savings account to cover the draft.) The only drawback I've found is that the credit union ATMs aren't as ubiquitous as the US Bank ATMS, but this is actually very easy to plan around.
Even the credit union's on-line banking services are superior. That's right: a four-branch credit union has better on-line capabilities than one of the largest banks in the nation.
This simple change has saved me at least $96 a year in bank fees, and has actually made dealing with a financial institution a pleasant experience.
Author: J.D. Roth
In 2006, J.D. founded Get Rich Slowly to document his quest to get out of debt. Over time, he learned how to save and how to invest. Today, he's managed to reach early retirement! He wants to help you master your money — and your life. No scams. No gimmicks. Just smart money advice to help you reach your goals.
USBank (or any large bank for that matter) vs Credit Union. To me this comparison is not even fair… for the big banks. To them, you are really just a number that they will take any chance they get to profit from. Its all about the share holders! (profit) There really is no personal aspect to customer service at such a bank. Today, even the smallest CUs have all the features of the big banks (online bill pay etc.) most CUs have very loose terms for accepting new customers. WHY ISNT EVERYONE A MEMBER OF A CREDIT UNION. Compare the… Read more »
I came to Vermont from Canada in 2001. In Canada, banking is a little different in that there are a handful of very dominant national banks – Montreal, Toronto Dominion (TD – yes, that TD)- Nova Scotia. In addition to lousy service (I was once told it would cost me a $5 service fee when closing a savings account) the fees were so widespread that it seemed as though the banks were simply experiments for seeing how many fees an individual could pay. Once in the US I got an account at a smaller bank hoping to avoid this. “Free… Read more »
Matt, I did the opposite of you: I moved to Canada from Vermont in 2002. The fees charged by banks here still blow me away; I remain astounded that there is no such thing as free checking or ATM service here. I did find a bank (Banque Nationale) that offered free checking and ATMs as long as you kept at least $2,500 in your account, but they did away with that a year or two after I moved here. Unfortunately here in Québec, even credit unions charge high fees. The Desjardins credit union’s fees are just as high if not… Read more »
brad – When I still lived in Canada I fell in love with President’s Choice Financial. They have free chequing, unlimited free Interac and every transaction that I ever needed to do could either be done at a PC Financial or CIBC machine, online, or over the phone.
Before that I’d been with TD and dealt with their 90 day out-of-country cheque holds (NINETY DAYS!), $20 daily withdrawal limits, and snooty attitudes. I was shocked that they managed to do any business whatsoever.
Thanks, Melanie but unfortunately their no-fee banking is still not available in Québec. If they bring it here I’ll switch in a hearbeat…I paid over $170 in bank fees last year!
J.D. I know it’s been a while, so who knows if you’ll read this any time soon, but find out if your credit union is part of the Co-Op network (http://www.co-opnetwork.org). If it is, you have access to more ATMs than any several major bank customers put together. The web site has an ATM locator. I have 100 places I can get money within 8 miles of my city center, about 55 of these will also accept deposits. In my area, and every other major city I’ve visited in the last 6 months, the company that runs ATMs for 7-Eleven… Read more »
I love my credit union. It’s convient and easy with the bonus o fnot having maintenece fees on it.
Community banks are not only more appealing as they have demonstrated the most restraint not offering bad loans. Plus you can earn more money with community banks through reward checking.
You should look into Checking Finder (https://www.checkingfinder.com/). This search tool will find community banks paying up to 7% for reward checking. Just type in your zip
I worked for 12 years at the 6th largest CU in the US. Loved it. They treated their members (customers) with the utmost respect as they owned the credit union. They treated their employees very well too. They have a reputation for paying higher salaries, especially for the tellers, new accounts, as they’re the ones who have face to face contact with the members. It boggles my mind that more people aren’t members of a CU. They tend to provide better customer service, lower fees, better rates, etc. Any profit goes back into the CU to provide lower fees and… Read more »