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Ask Dave

Bank Versus Credit Union

Which does Dave say is better for keeping your money, the bank or the credit union?

QUESTION: Beverly and her husband are debt free. She wants to know if credit unions are safer for keeping money than traditional big banks that have stock that goes down? Dave talks about which type of institution he prefers, and why.

ANSWER: There are basic insurances like FDIC insurance at a bank. The equivalent at a credit union is NCUA. The thing you want to look at is hassle factor should one of them go broke. I haven’t done business with the megabanks for years because of poor customer service. I use a local community bank for my banking as well as credit unions. In most cases, credit union and small banks didn’t get involved in the subprime mortgage debacle. Credit unions are an excellent place to have money.