TL;DR: Credit union account rates low, I moved, and even though the app and co-op network are great, not sure if I should leave.
So, I’ve been with a certain credit union for years. But, to be honest, compared to some other credit unions out there (or even banks), it has pretty lackluster rates across the board.
I moved recently and that’s given me cause to think about closing it, despite the great app and co-op network basically working regardless of where I am.
0.2% on checking, 0.45% on savings, and about 0.9% on a money market account with a $1000 minimum.
It’s got great customer service. I’m on a first name basis with the people there, but I feel like, even with just checking and emergency savings, I’m leaving money on the table.
Is it worth leaving for some of those advertised 4 and 5% checking and savings accounts other places offer?
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Can’t you open an account with another bank/co-op/credit union, see if their perks are as good as advertised, and then decide if you want to move?
This isn’t a marriage. It’s where you get a bank card from. Try before you buy, etc.
Yeah, I am probably overthinking it. I’ll check around and open a trial account or 2 to see how good the places I’m thinking about moving to are.
You can have a lot of accounts open lol there’s no need to close your current CU account for the most part. Some banks/CUs do have minimum balances or a monthly fee if below that but lots don’t, just double check the terms for yours
I personally have savings accounts (And sometimes checking too) at like 3 CUs and a handful of banks lmao
I’d keep it and open a better savings account or brokerage account for the bulk of your cash. You don’t really need high interest for day to day spending, and you don’t need your extra savings at the same place either.
I personally use a brokerage account for everything, but I also don’t use branch services. If you do and you like knowing the people there, keep the account.
You are not required to only have one bank account. You can have as many checking/savings accounts as you like.
If you like the CU account then keep it & open a different account elsewhere with higher rates for the majority of your cash to sit in. You can transfer money between bank accounts.
I have a high yield savings account through a large bank, but linked to my low interest checking account at my credit union, so I can move money between accounts as needed. The checking account is strictly for direct deposit and to pay bills, and I transfer extra into savings, so the balance is never very high.
So the answer may be just to open a HY savings account in addition to your current accounts
It’s not a binary choice of good rates or credit union. My money market gets 3.6-4% depending on balance. Find a better one that doesn’t charge any fees.
I know the struggle. We were in a similar situation ourselves with our CU and decided to pull the plug. While I love the co-op model, the rates across the board were shit (talking .05% on checking and .45% on savings), and what’s more, the rates they gave us when we were shopping for mortgage loans and car loans were even worse (variable mortgage rate at 7% in 2021, when everyone else was offering 2.5% fixed).
At the end of the day I realized that it wasn’t worth leaving money on the table just to have the warm fuzzies of being with a meh, at best, banking institution. In 2023 all I really want are competitive rates, my funds insured, and easy, secure access to my funds and mobile banking. If you can’t do that, there are dozens of other institutions that can.
Yeah, I’m basically where you are now with my mindset.
This CU helped me out during the pandemic, when I was on the struggle bus, but their rates are virtually unchanged since then. It’s pretty much just that and inertia that’s kept me with them so far.
Time to finally move on to somewhere that actually tries to keep up with the market.
And also, if I left, I definitely wouldn’t be eligible to rejoin. Moving and changing jobs has ended that.
I agree with the others who recommended having both. I like to have multiple banks just so I don’t lose everything if one account gets compromised.
Just keep it open. Can’t hurt. I’ve got accounts at 3 credit unions (1 online, 2 local). Being in the military years ago, I saw a lot of people who’s accounts were hacked and how much it sucks to have no money at all, so I don’t keep all my money in one place.
