The Street has an interesting article on credit union members being vulnerable to fees -- a fact rarely shared or acknowledged. The story noted that some credit unions may have benefitted more than their new members from Bank Transfer Day movement.
Read the post.
I have banked at both a credit union and a bank. It has been my experience that both charge fees as a way to generate additional revenue.
ReplyDeleteNot entirely true. Some credit unions do need to charge fees to generate additional revenue because they can't or don't manage their spread effectively. However, most credit unions like ours charge fees to recover our costs, most of which are direct costs from third parties. We don't begin to cover our internal costs like staff salaries and benefits. And then people like Leggett try to connect charging fees with taxation. Keith, one has nothing to do with the other. Charging fees falls under this concept you may have heard of. It's called free-market competition. If you don't like paying fees, then get off your couch and find an institution that has a smaller fee schedule.
Deletedavid der green strikes again! the defender of credit unions!!!!
ReplyDeletethe free market is deciding YES!
theyve decided that despite all the bad in banks, that banks still have 95% of US deposits!