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View Full Version : Doesn't the rate of return at credit unions stink?



ApatheticNoMore
6-12-12, 3:12pm
Ok we're all supposed to put our money in credit unions, but the last I investigated the rate of return on them is quite low (over 3 years I would have lock my cash away (in CDs at the credit union) to get a rate of return still lower than I get in a totally liquid online bank account!). And I know the returns everywhere are poor now, but the online bank account while having a low rate of return still beats the credit union hands down in rate of return.

So the credit union pitch is really: you SHOULD sacrifice any return at all (and it's not like it's even keeping up with inflation really regardless) for the sake of doing the right thing and leaving those evil banks. Well maybe I should. But hmm, is it any surprise I keep procrastinating? :) And I believe that so much of the system as such is basically evil. I believe that many large corporations and government are involved in a high degree of evil. And yet still. Maybe I don't even think credit unions are AWAY enough from it all. Am I absolutely positively sure they don't lend money to the large corporations that are part of the problem?

But also the rate of return IS aweful. And I never see this mentioned when people say we SHOULD move to credit unions, they never mention it as principled sacrifice (of potential return). But isnt' it? By the way I'll pay more for fair trade, I'll pay more to buy the recycled paper products etc.. but accepting the credit union rates of return is still hard. So what do you do? Take the rate cut, accept that you'll earn a small percent of what was already a small precent and do the right thing? Or are you greedy as well and sticking with the bank? :)

freein05
6-12-12, 5:03pm
The interest paid by every financial institution these days is low. Credit unions have some of the highest returns. The only way to get a higher return is to go into the stock market or spend some time in Los Vegas.

Tweety
6-12-12, 5:50pm
My biggest reason for using a local credit union is just that.. it is local. It is run by people in my community, people I know and can hold accountable. That means a lot these days!

gimmethesimplelife
6-12-12, 6:04pm
My biggest reason for using a local credit union is just that.. it is local. It is run by people in my community, people I know and can hold accountable. That means a lot these days!+1, and this is why I am willing to take a lower rate of return.....Rob

sweetana3
6-12-12, 6:22pm
I also go to my credit union for the local and fantastic service provided. Our rate of return compares favorably to all the other banks (with the exception of some questionable internet service) and their loan rates are also comparably low.

Walking in and talking to a local and known person is priceless.

They pay as much as they can to reasonably stay in business for their members.

razz
6-12-12, 10:00pm
Our CU pays at least as much as any bank.

iris lily
6-12-12, 11:09pm
...So the credit union pitch is really: you SHOULD sacrifice any return at all (and it's not like it's even keeping up with inflation really regardless) for the sake of doing the right thing and leaving those evil banks. Well maybe I should. But hmm, is it any surprise I keep procrastinating? :) And I believe that so much of the system as such is basically evil. I believe that many large corporations and government are involved in a high degree of evil. ... Or are you greedy as well and sticking with the bank? :)

well I would wonder that you give anyone your money with this mindset of evil this, greedy that.

I look for a decent rate of return and do not attempt to avoid the "evil" since I doubt my ability to spot that.

bae
6-12-12, 11:17pm
My local bank is community-owned-and-operated, so I don't view it as "evil".

SteveinMN
6-12-12, 11:33pm
The only banks offering "better" rates of return are the ones which need to offer them to attract customers. No bank in my area is offering notably better returns on investments than my credit union does. And at least I know my CU isn't going to (literally) nickel and dime me with fees for using an ATM or (!) using a teller, for servicing my mortgage (yeah, they have that, too), or for not having hundreds of dollars sitting in checking so they can live off the float, and so on.

My CU, at least, is the better of a bad lot of financial institutions.

uji
6-13-12, 4:43pm
If you check CD rates on Bank Deals - Best Rates and Deals (http://bankdeals.blogspot.com/search/label/weekly%20summary?max-results=1), you'll find the CU's are usually near the top -- especially Pentagon Federal Credit Union, my personal favorite.

Why deal with commercial banks? They make a profit off of your business -- that's the point, right? Why deal with all the sales pitches and bait-and-switch tactics. They'd pay you nothing for your money if they could.

By the way, this article from The Onion (http://www.theonion.com/articles/goldman-sachs-hires-single-morally-decent-human-be,28460/) is funny (and it IS funny), only because it is so true: One of my kids got hired briefly by Goldman-Sachs. He quickly discovered that he was the only non-sociopath in the office. He started wondering why he'd been hired. After a couple of weeks, he figured that he must be the token human-being. He didn't last very long. He is now teaching...