Nathan Hager, wtop.com
WASHINGTON – That much-derided $5 per month debit card fee from Bank of America may have come and gone, but it seems many customers have plenty of reasons to feel less than satisfied with their banking experience.
From near-zero interest rates on savings accounts to rising fees for things like out-of-network ATM use or bounced checks, some people might feel like they’re paying their bank for the privilege of housing their money.
That could explain what appears to be a growing phenomenon: bank customers shifting their money to credit unions.
“People just feel like they don’t always know what to expect from their bank,” says Kimberly Palmer, author of the Alpha Consumer blog at U.S. News & World Report.
Citing data from the National Credit Union Association (NCUA), which ensures deposits into credit union accounts, Palmer says more than a million people transferred their savings from banks into credit unions last year.
Because credit unions are owned by their members, they have lower overhead costs than traditional banks, which allows them to offer higher interest rates on savings accounts, lower interest on loans, and lower fees.
To keep costs low, however, many credit unions keep shorter hours than large bank branches, limiting customers’ access to a live teller.
Also, because many credit unions are community-based, you won’t be likely to find a branch too far out of state.
“If you’re someone that really wants to have ATMs wherever you go, maybe you travel a lot, or if you get paid in cash and you want to have access to a bank teller at all times, then you won’t find that in a credit union,” says Palmer.
But if you think a credit union may be right for you, Palmer says it’s gotten easier to meet the eligibility requirements that have prevented many customers from joining in the past.
“You might find that, through your workplace, through your spouse’s employer, or even a local government council, that you can become eligible,” says Palmer.
NCUA has set up a website, mycreditunion.gov, to help consumers find a credit union that they may be eligible to join.
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