Credit Unions Still Offer Free Checking And More

Although most big banks are pulling the plug on free products and services, credit unions throughout the country continue to offer many for free. See what you are missing if you haven?t joined yet.

Getting Free Checking Accounts

Kiss free checking goodbye if you still bank with one of the big giants. Bankrate.com says that the average service charge on non-interest bearing checking accounts is at an all time high of $5.48--up 25% from the previous year. Only 39% of the banks Bankrate.com polled now offer non-interest bearing free checking.

Also the days of keeping the bare minimum in your account are over at big banks--now the average minimum balance to avoid the fee has increased to $723, up 23%.

Although free checking appears to be almost non-existent at big banks, Bankrate.com surveyed 50 of the nation?s credit unions and found at least 72% still offer free checking with no required minimum balance.

Free checking, along with a smattering of other free products and services is what sets credit unions apart from fee happy big banks, says Carrie O?Connor, SVP/Lending Services at CommunityAmerica Credit Union ($1.5 billion, Lenexa, KS). ?As a dedicated advocate of financial education, CommunityAmerica is proud to offer our members financial coaching and credit counseling, free of charge,? she says.

?Our members currently also enjoy free checking accounts, as well as free online banking, free online bill pay, free mobile banking, free teller services and free shared branching services. It?s also worth noting our credit cards don?t have an annual fee and we have lower balance requirements to open CD?s ($500 minimum) and Money Markets ($1,000 minimum) than most banks.?

For members at SACU ($2.9 billion, San Antonio, TX), the choice is easy. ?The average checking monthly fee is $7 to $10 monthly (fees can be higher depending on bank),? explains Paige Ramsey-Palmer, APR, Corporate Communications Officer. ?The NSF fees are typically higher at banks compared to $25 courtesy pay/NSF fee. Typically, banks charge a fee if you don't maintain a minimum balance (normally higher than CU). However, SACU offers several free deposit products that don't require a minimum balance.?

Ramsey-Palmer says for those who choose the credit union?s popular, myGeneration Checking, members can earn a higher dividend rate on balances up to $25,000 if they meet certain criteria. ?The dividend rate is significantly higher than regular savings and somewhat higher than our money market account rate, so this could present not only a savings but also an earnings benefit to an account holder.?

Avoiding ATM Fees

Bankrate.com also reported that the average ATM surcharge increased by 4%--the eighth consecutive year of increases. Now, 100% of banks in the Bankrate.com survey said that they charge non-customers to use their ATM and many banks charge their own customers if they use another financial institution?s ATM. For customers paying fees on both ends, this could equate to an average of $4.07--just to use an ATM (up 7% from last year).

Credit union members are typically not charged a fee for using an outside ATM (by their own credit union) and members have free access to thousands of shared service centers worldwide. Additionally, many credit unions do not charge a fee when the member selects the ?cash back? option at point of sale. Of course every credit union is different so it?s important that members inquire about their credit union?s specific ATM program.

Accessing Online Services

Big banks are trying to get the average consumer to think that he or she doesn?t have access to the same type of technology at a credit union.

Not true says Martindale. "There are credit unions that have apps for mobile banking, so you can't just assume that only the big banks have the convenience factor," she says.

Ramsey-Palmer says that her credit union?s mobile banking app has saved members both time and money. ?We rolled out GOTM, the mobile app from SACU, this summer. Members have reported significant time savings (and time = money) because they can check on balances, transfer funds and manage their accounts on the go. They also can use our GoDeposit feature to make a deposit, anywhere and anytime, rather than wait in drive-up lanes or in teller lines inside branches.?

Interested in avoiding costly bank fees? Join a credit union and hang onto more of your hard earned cash.

Source: http://www.creditunionsonline.com/news/2012/credit-unions-still-offer-free-checking-and-more.html

randy moss randy moss hunger games premiere the bachelor good morning america red meat bachelor ben