Move My Accounts from a Big Bank to a CU?

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Mr. Fri's picture
Mr. Fri
Status: Silver Member (Offline)
Joined: Feb 21 2009
Posts: 220
Move My Accounts from a Big Bank to a CU?

Right now we do our banking at Bank of America.  We have our auto deposit and many auto withdrawal accounts set up with them so it would be a big hassle to change banks.  However, I'm not sure being with a big bank is a smart move. I'm thinking of changing to a credit union instead of staying at  a big bank.  The questions I have are: (1) Would a move to a credit union be a safer move than staying with BofA? and (b) How can I tell which CUs are the better ones to bank with?

albinorhino's picture
albinorhino
Status: Member (Offline)
Joined: Dec 14 2009
Posts: 23
BankRate.com

Go to www.bankrate.com and scroll down about midway on the home page, left side. You will find a small block labeled "Safe & Sound Ratings." You can search by name, state, rating, etc.

Good hunting!

SailAway's picture
SailAway
Status: Gold Member (Offline)
Joined: Aug 11 2010
Posts: 404
Re: Move My Accounts from a Big Bank to a CU?

 

One aspect to consider is the big banks will be bailed out (to big to fail...), not necessarily true for the small banks.

 

Mr. Fri's picture
Mr. Fri
Status: Silver Member (Offline)
Joined: Feb 21 2009
Posts: 220
What about Credit Unions?

Yes, I realized that the big banks will get bailed out and little banks could be at a disadvantage for recieving bailout money.  But what about Credit Unions?  I've heard that big banks don't like to service small accounts so maybe going to a CU could be better in the long run.

Mr. Fri's picture
Mr. Fri
Status: Silver Member (Offline)
Joined: Feb 21 2009
Posts: 220
What about Credit Unions?

Yes, I realized that the big banks will get bailed out and little banks could be at a disadvantage for recieving bailout money.  But what about Credit Unions?  I've heard that big banks don't like to service small accounts so maybe going to a CU could be better in the long run.

Travlin's picture
Travlin
Status: Diamond Member (Offline)
Joined: Apr 15 2010
Posts: 1322
There are better choices than BofA
Mr. Fri wrote:

Right now we do our banking at Bank of America.  We have our auto deposit and many auto withdrawal accounts set up with them so it would be a big hassle to change banks.  However, I'm not sure being with a big bank is a smart move. I'm thinking of changing to a credit union instead of staying at  a big bank.  The questions I have are: (1) Would a move to a credit union be a safer move than staying with BofA? and (b) How can I tell which CUs are the better ones to bank with?

Mr. Fri.

Albinorhino provided the answer to both your questions. Just pick another bank or a credit union with a good rating. Credit unions have US Government backed deposit insurance with the same limits as the FDIC that insures banks. That is your protection, not whether a bank will get a bailout. Why reward a taxpayer subsidized “bailout queen” with your business when sounder banks and credit unions are available with the same deposit insurance? Some credit unions are not available to the general public so you need to ask about this. Some of them will not be sound either, so check those star ratings.

Travlin

Mr. Fri's picture
Mr. Fri
Status: Silver Member (Offline)
Joined: Feb 21 2009
Posts: 220
The two credit unions we

The two credit unions we belong to are both rated 3 star while B of A is rated higher than that.  Looks like we should just stick it out at the bank. 

I'll also keep my eye on the Fed lawsuit in case it starts to cause problems for the big banks.

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