Hey there, tired of forking out your hard-earned cash each month just to own a checking account? Well, it’s time to turn that frown upside down! Because guess what? You don’t have to. Yes, you heard that right.
Consider Joining a Credit Union
Recent research conducted by Bankrate suggests you might want to throw your hat in with a credit union. They took a good, hard look at the 50 top-dog credit unions in the U.S. from January 17 to 25 and found something pretty darn interesting. Turns out, a whopping 84% of these credit union checking accounts don’t attach a monthly maintenance fee. That’s a pretty significant leap from the 72% two years ago.
But Wait, There’s More!
Even better, the fees that do come with credit union accounts generally make less of a dent on your wallet than their traditional banking counterparts. You know that pesky $2.50 fee you get hit with every time you try to use an out-of-network ATM? If you’re part of a credit union, you’ll wave goodbye to that and say hello to a more manageable $1.50. And let’s not even get started on overdraft fees. They typically hover around $27.76 at credit unions. Compare that with your bank’s $35, and you’ll be laughing all the way to the ATM.
The Driving Force Behind Free Checking
You’re probably thinking, why are these credit unions, being non-profits and all, suddenly rolling out the red carpet with free checking?
The survey has chalked it up to good ol’ technology. The wide accessibility of online statements has side-stepped the cost of physical maintenance, making it a breeze to offer no-fee checking. But if you’re old school and prefer getting your hands on traditional paper mail, there could be a fee, heads-up!
Why Credit Unions Generally Charge Lower Fees
Allow me to let you in on a little secret: at most credit unions, account holders aren’t just customers—they’re part owners. This makes for a unique, cooperative model, unlike traditional banks. However, in fairness, the steeper fees at banks isn’t always for nothing. They usually offer more bells and whistles—think state-of-the-art mobile banking and payment options. If you’re keen on enjoying the perks of a large bank minus the eye-watering fees, don’t sweat it. Money has spotlighted two checking accounts that pack value for their buck.
Joining a Credit Union
Here’s something you should know, though. Turning over to a credit union typically involves some kind of affiliation. Could be your religion, your geographical location, your workplace—there’s usually something. Kiplinger has the scoop on that. But, hey, it’s certainly worth looking into! Especially when Money’s top credit union pick not only serves up free checking but also pays an interest rate that sends the national average packing—20 times over!