Credit unions are not-for-profit financial institutions. They offer many of the same products and services as banks—including savings and checking accounts, loans, ATMs and online banking—but there are also big differences that can save you money. Credit unions are owned and controlled by their members, not profit-driven shareholders. That means the average credit union can offer better rates and lower fees. Learn about joining a credit union today!
1. Open Your New Account*
In most cases, you should be able to open a checking account with an initial deposit of $5 to $25 (each credit union can determine how much one share will be). By purchasing that one share, you'll become a member and co-owner at the same time.
2. Order New Checks and an ATM/Debit Card
These typically arrive within 1 to 2 weeks. You should also consider applying for a credit card from your new local bank or credit union at the same time.
3. Ask Your Employer to Reroute Your Direct Deposit
When you open your new account, ask the bank or credit union for a direct deposit authorization form that includes your new account information. Give this form to your employer and anyone else who makes direct deposits to your account. It may take one or more pay cycles for the change to be made, so keep your old checking account open and watch for the switch.
4. Contact Companies that Direct-Debit Your Account
Using your last bank statement, make a list of any businesses that you've authorized to directly debit your account. Ask your new bank or credit union for an automatic payments authorization form that includes your new account information. Send this to the businesses on your list.
5. Set-up Online Bill Paying for Your New Account
If you like to pay bills online, set up bill payment information for your new account. Also, stop automatic, recurring payments you have established through your old account.
6. Close Your Old Account
Once you have started receiving direct deposit into your new account and are sure that there are no outstanding checks or automatic debits that need to clear, close your account. Warning: do not just withdraw the last dollar and assume the account will fade away on its own. Your bank may start charging you fees for having an empty or inactive checking account. Instead, follow the bank's procedure for closing out the account.
7. Enjoy Your New Local Banking Relationship!**
Once you have settled into your new financial relationship consider switching all of your accounts to the credit union.
Source: www.MoveYourMoneyProject.org (This checklist was produced by the New Rules Project's Community Banking Initiative. Visit www.newrules.org/banking for articles, graphs, and studies.)
* Revised source: National Credit Union Administration (NCUA).
**Revised source: Credit Union National Association (CUNA).
Search for a credit union that’s right for you.While not every person can join every credit union, there’s at least one credit union for everybody. Membership eligibility is defined by each credit union’s charter and can be based on your employer, school, house of worship or even where you live. Look for a credit union that is a member of the Co-op Network of surcharge free ATMs and shared branching centers. To switch your financial services to a credit union follow these 7 steps. |
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Better rates, lower fees.Lower loan rates, higher savings returns and limited fees mean credit union members, on a national average, save $72 per member or $136 per member household each year. To see the difference on major loan and savings products and typical fees, click here. |
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Credit unions serve their members.Credit unions consistently earn higher customer satisfaction ratings than banks. And why not? Because every member is an owner, too. When you join a credit union, you’ll get more personal service, better rates and lower fees than other financial institutions. 92 million members can’t be wrong. |
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Get the products and services you want.From mortgages and car loans to retirement accounts and credit cards, America’s 7,500 credit unions offer many of the same products and services as banks, and the same sense of security, too. The National Credit Union Administration backs deposits up to $250,000 with the full faith and credit of the U.S. government. |
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Credit unions are not-for-profit.Credit unions put their money back into the communities they serve. Instead of paying shareholders, credit unions keep costs low and provide financial education and counseling services to people in need. |
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On average, they have better rates and lower fees.
They earn higher customer satisfaction ratings.
As not-for-profits, they have lower costs and pass the savings along to members.
Every member is an owner. There's no question whose interests will be served.
They give back to their communities with financial education and counseling services.
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