banks

Are Credit Unions Better Than Banks?

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Are Credit Unions Better Than Banks? 1

Credit unions and banks are both financial institutions that offer similar services such as checking accounts, savings accounts, loans, and credit cards. However, there are some key differences between the two that make credit unions a better choice for many people. Regulatory Foundations: A Brief Background Before diving into the direct benefits, it’s essential to understand the foundational differences between these two types of financial institutions. Banks are for-profit organizations owned by shareholders. They aim to generate profits to increase shareholder value. In contrast, credit unions are not-for-profit financial cooperatives that are owned by their members. The primary goal is to serve those members rather than generating a profit for external shareholders. Regulatory Environment The regulatory environment also varies. Banks are usually regulated by a mix of state and federal agencies such as the Federal Reserve and the Office of the Comptroller of the Currency (OCC), whereas credit unions are overseen by the National Credit Union Administration (NCUA). Each comes with its own set of rules and customers. Credit Union Ownership Credit unions are not-for-profit organizations that are owned by their members. This means that they don’t have to pay dividends to shareholders or generate profits for investors. Instead, they …

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Can You Get a Single Check from the Bank?

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get a single check from a bank

Although checks are less commonly used than they once were, there are certain instances where writing a check is the only option, or just the better option. You can get a checkbook from the bank by ordering checks at your bank or credit union. You can save money if your bank’s check books are too expensive by ordering checks from Costco or other companies if your bank marks their checks up too high. However, that might be overkill if you only need a single check, or just a few starter checks from your bank or credit union. Can you get a single check from the bank? If you want the bank to issue a check on your behalf, you can get a cashier’s check, or bank check. Most banks and credit unions will print a small number of checks for their customers on demand if you come into the branch. Usually, these few checks are printed at the bank and come with a new account or loan as a way to provide access to the new account while a full order of printed checks is on the way, but they’ll usually print some for free if you just ask. At …

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Are Colorado Payday Loans Legal and a Good Idea?

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colorado payday loans interest

Payday loans have gotten a bad rap, and deservedly so. Payday lenders have behaved in a predatory manner. However recent payday loan rules and regulations have eliminated some of the worst abuses. While a payday loan should be no one’s first choice, when used properly, for the short-term only, a pay day loan may be better than missing out on an opportunity or avoiding a problem. So, are Colorado payday loans legal and are they a good idea? Colorado Payday Loans Law Coloradoans passed Proposition 111 during the 2018 elections. That law capped the interest rate on payday loans at 36%. Colorado law also sets a payday loan maximum in Colorado of $500. In addition, lenders may only charge financing fees up 20% for the first $300 and $7.50 for each additional $100 loaned. The law also limits the interest rate on loan renewals in Colorado to 45%. Only one rollover is allowed. If your repayment does not go through due to non-sufficient funds (NSF), the maximum fee is $25. The minimum term on payday loans in Colorado is six months, but you should pay it off sooner to avoid accumulating more interest. All Colorado payday loans laws apply to …

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Bank Merger Signals New Phase of Economy

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bank mergers money

OK, here we go. The first big bank merger (or acquisition) since 2008 was announced today. It is significant for several reasons. Banks Are Back? As the financial industry imploded in 2008, it took the banks with them. It also exposed a lot of their shadier practices and brought out new regulations and reporting requirements. As a result, banks were in no way ready for the kind of scrutiny markets, investors, and regulators would perform if they tried to merge or acquire one another. Today, two semi-major banks are merging to become one of the big boys. BB&T and SunTrust are merging. They are going to pick a new name, though they apparently don’t know what it is. Wall Street seems to approve of the deal. Bigger Banks Better? One of the reasons given for the merger is that being a bigger bank is better. The idea is that some of the costs associated with being a modern bank make being smaller less viable. That isn’t entirely true. A small bank, serving one, or a few, states is still a completely profitable and worthwhile venture. Where banks are getting stuck is that area between small, and big. There, it can …

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What Is a Cashier’s Check?

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I’m going to do a whole series on this based on some questions I keep getting, but for now, here is the short version. A cashier’s check is a check drawn on the bank’s funds, instead of a person’s funds. As a result, such a check would never bounce, or fail to clear for insufficient funds. However, there is a rash of scams out there involving fraudulent, or fake, cashier’s checks, so always call the bank to verify a cashiers check before accepting it.

Where To Get Free Checking

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free checking graphic

If you know anything at all about personal finance, you know that big banks are financial institutions for big suckers. Right now, with interest rates at, a little bit over zero, everywhere, it isn’t as easy to tell, but big banks have never been good deals for average customers. Big banks are good deals for big money. Are you big money? Here is an easy way to tell. What interest rate do you get on your CDs and other accounts? If you get the posted rates, then you are not big money. If you get a rate negotiated by you and the bank manager because you business is so valuable, then you might be big money. Credit Unions Are Better Than Banks – Always There are numerous studies that show free checking is disappearing from big banks. Everyone already knows this, but until someone goes out and actually crunches the data, you don’t have a news story. Now, we’ve got a story and a money headline. Only 38 percent of banks offer no-strings, free checking. However, nearly 72 percent of credit unions offer free checking. By the way, this story NEVER changes. Credit unions are always better than banks for …

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Bank of America Cancels Debit Card Fee

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After facing the biggest customer backlash in recent memory over its decision to implement a $5 per month use fee for customers using a Bank of America debit card, the banking giant has reversed course and announced that it will not charge the $5 debit card fee starting next year. This news comes on the heels of news from several other major banks, like Chase and Wells Fargo, announcing that they would not charge a monthly debit card fee. More recently, several regional banks, including SunTrust and Regions, that had already been charging a monthly fee to use a debit card had to abandon the fee once it was popularized by the media in the wake of Bank of America’s decision to implement the fee. One can only wonder how their customers reacted prior to BoA implementing the fee. The lesson from all of this is that customers need to be very watchful of banking fees and charges. Do not just throw away those notices you get from your bank that are full of fine print, and carefully scrutinize your statements each month to ensure that no new fees are draining money from your accounts. As a long-term solution, consider …

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Government Making Profit From Bank Bailout?

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The huge government bailout of banks during the height of the banking crisis was the cause of much concern and hand wringing. Among political types, the debate centered around the theoretical concepts of whether or not the government should be involved in propping up banks and whether or not such involvement constituted something “socialist.” Whenever the political theories involved, as a more practical matter, there were some very real concerns about how and when the government might be able to undo some of the things they had done. One example was the government’s bailout of Citigroup. The Treasury provided $25 billion to the banking giant. In exchange, it got an enormous amount of preferred stock. At the peak, the U.S. Treasury owned approximately 27 percent of Citigroup stock. This unprecedented arrangement left some very difficult questions up in the air to be determined later, not the least of which is how does someone — the U.S. Government included — get out of a 27 percent position in a major financial institution without causing more problems? Thankfully, recovering markets and an improving situation at Citigroup have made it unnecessary to answer such questions under difficult scenarios. Rather, the Treasury has been …

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