Comments on: Ecology of Banking: Credit Unions, Banks & Thrifts

By: Mark

Mark — Mon, 02 Mar 2009 02:04:27 +0000

It sounds as if Barry has an axe to grind with Credit Unions. Which bank are you employed by Barry?
This pissing match has been going on for years between the banks and the CU’s. But it really only matters to educated consumers; the banks want people to “believe” they offer a better service, and the Credit Union appeals to an educated consumer. All anyone needs to do is perform the unbiased research to understand the advantages and disadvantages of both institutions.
I personally will only do busines with Credit Unions. Especially after the recent mess the banks have gotten themselves into.

By: Barry

Barry — Mon, 12 Jan 2009 20:09:38 +0000

There is a huge difference between Credit Unions and Commercial Banks…that being taxes. Credit Unions pay NO TAXES. Commercial Banks are like any other business and required to pay their fair share of taxes, which frankly can be sizeable. This creates an uneven playing field when it comes to products and services that can be provided.

There may be some smaller Credit Unions that have small paid staffs and many volunteers…but those are dwindling. Credit Unions certainly serve their purpose when they serve their “membership areas”. But when they begin to define their “membership areas” to include areas that have no real connection to their original charter, then they have overstepped their bounds and should be held to the same standards as Commercial Banks and required to pay TAXES.

By: D Heffelfinger

D Heffelfinger — Wed, 07 Jan 2009 18:14:48 +0000

Apparently you aren’t familiar with how a credit union operates ? Credit unions have small paid staffs, many volunteers, and no investors to pay off. I don’t think taxes make the big difference !!!!

By: Robert

Robert — Wed, 07 Jan 2009 18:13:16 +0000

The differance between a share account versus a savings or checking deposit is not only vocabulary. Shares can be offset to reduce or prevent loss if the owner defaults on an obligation with the credit union. A financial institution must have a court ruling to contest for deposits.

By: jim

jim — Wed, 07 Jan 2009 01:10:38 +0000

You should have voting privileges in any state, I’d call your credit union to clarify.

By: jim

jim — Wed, 07 Jan 2009 01:10:21 +0000

That’s right, good catch. One thing to be wary of is that it’s only until December 2010, after which it’ll revert unless they make it permanent…

By: Billy Martin

Billy Martin — Tue, 06 Jan 2009 23:01:02 +0000

I am a member of a credit union but I have no voting privileges. Am I suppose to in Texas?

By: Jennifer O

Jennifer O — Tue, 06 Jan 2009 21:15:08 +0000

One last thing..the deposit insurance on NCUA and FDIC for institutions changed from 100,000 to 250,000 this past year.

By: Brenda

Brenda — Tue, 06 Jan 2009 21:08:07 +0000

Good information some of the information we did not know and was very informative. e.g. thrifts — never quite understood the difference.

By: Rick Morley

Rick Morley — Tue, 02 Sep 2008 20:28:25 +0000

As far as I understand, I huge difference between a credit union and a bank is that credit unions are considered tax-exempt organizations. Thus they don’t have to pay taxes. This is one reason credit unions can often give better rates than the banks down the street. They have less overhead, since they don’t have to pay taxes.