Banks vs. Credit Unions: Fees – where does my money go?Written by Christina Miller
Edited by Carly Simon-Gersuk
Recent reports show that banks have raised fees, like overdraft and out-of-network ATM fees, to record levels.
According to Bankrate’s annual checking survey, banks have recently raised the average fee for using an out-of-network ATMs to an astonishing record high of $4.72 per transaction.
Bank overdraft fees are at record highs too. During a pandemic where half of America is having a hard time, you say? Oh my yes. In fact, banks are reported to have charged low-income Americans (those most affected by overdraft fees) BILLIONS in overdraft fees in 2020 alone.
And that’s not all:
- The average overdraft fee is currently $33.58 with brick-and-mortar banks (aka the “Big Banks”) charging the highest fee compared to other financial institutions. While credit unions charge too, their fees are an astonishing 22% less than the big banks on average.
- Many banks charge customers monthly service fees when their checking account balances fall below a certain amount. That average monthly fee $16.35 for interest-bearing accounts and $5.08 for non-interest checking accounts - making frequently free credit union checking all the more appealing.
With bank fees consistently rising year after year, credit unions provide the ideal solution.
Unlike for-profit banks, who use their fees to appease stockholders, credit unions are not-for-profit, which means any profits garnered are returned to the members in the form of better rates and lower fees.
Find your credit union lending partner. We can help you find, compare, and apply for credit union loans, all from our website and at no cost to you. Get started.
About MoveCU Inc.
MoveCU is the nation’s first credit union loan marketplace. Now users can instantly find, compare, apply for, and get pre-approval online in minutes on loans from credit unions around the U.S. Using their intuitive industry-leading technology, MoveCU is giving America’s smallest financial institutions a bigger voice and breathing new life into the credit union movement. For more information, visit our homepage.