Credit Union Banking

In my teens and 20′s I had checking accounts at several banks. At my longest-term job I signed up with the associated credit union. Over time I noticed that my credit union charged lower fees for overdrafts and such, had lower credit card rates, did not send an envelope full of ads with each statement, did not send two or three extra mailings of offers per week and generally was cheaper and much less annoying than any of my banks.

Credit unions have fewer, if any, local branches and don’t have as many services. However, some credit unions participate in shared branching, so I can make in-person deposits and perform some other branch-only tasks in a different credit union participating in the same shared branching program.

But I almost never need to go to a bank. The only reasons I’ve done so in the past 10 or so years is to deposit the odd paper check, but now many banks and CUs have deposit-by-scan where you photograph or scan the check and don’t have to send the paper along.

While hanging out at financial forums I consistently heard about good deals on certificates of deposit, loans and credit cards from Pentagon Federal Credit Union (PenFed) and Navy Federal Credit Union (NFCU). They didn’t always have the very best, but they were consistently competitive. I prefer to find a company that is consistently very fair as opposed to chasing the best deal every time.

Regulations require that credit unions restrict membership to a defined group. PenFed’s eligibility requirements are generally related to the U. S. Armed Forces and their families, but I was able to join after joining the National Military Family Association for one year for $20. It was well worth it. I’ve had a very good used car loan with them, a decent cash-back reward credit card and CDs with low minimums, competitive rates and reasonable early termination penalties. I use their CDs as my emergency fund since I don’t expect to break the CD, but the penalties aren’t unreasonable if I need to.

Navy Federal Credit Union is said to have generally good CD deals and mortgages. However I have been unable to join them so far since I am not military. I thought I had an “in” when they announced they were acquiring another credit union. I tried to join the other credit union, but paperwork got delayed and I don’t think I ever got an account established in time to join under the old credit union rules.

I’ve done IT work in traditional bank branches, and there are a lot of them, and they stay very busy. I have no idea what those people are doing there. I still can’t think of a reason I’ll need to step into a physical bank—as a customer—in the next decade. Anyway, for my checking, savings, CD, credit card and loan needs, credit unions have worked very well for me without the constant sales emails and snail mail.

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