Some students are making the switch from retail banks like Chase and Bank of America to credit unions, whether their reasons be political or practical.
Credit unions are said to promise lower fees, higher interest and better customer support.
Bank of America surprised many customers when it announced a $5 monthly debit card fee, leading to outrage that eventually forced them to reverse the decision.
“I opened an account with the LBS credit union a few weeks ago when I heard that Bank of America was adding more fees,” Cal State Long Beach student Adam Harris said. “I have not actually gotten around to moving my money, though.”
Others are switching not for practical, but political reasons, like CSULB alumna and Occupy Wall Street supporter Melinda Sulak.
“Our banks have gotten us into a huge financial mess,” she said. “I am encouraging everyone I know to take finance away from the banks and into the hands of the people.”
Sulak said the Occupy Wall Street-supported “Bank Transfer Day” on Nov. 5 was what got her to make the jump, and that she likes the convenience of having free ATM withdrawals at all 7-Eleven convenience stores.
Unlike a bank, which is a single corporate entity, a credit union is owned by the members, with management decisions made by a voting process that includes all members.
However, because credit unions are smaller organizations, there are also tradeoffs.
For one, most credit unions have some kind of membership requirement. In addition, credit unions may lack some of the benefits of a larger bank.
“I don’t really feel a need to switch away from my bank,” CSULB student Will Grady said. “I use Wells Fargo. It is cool to have one right on campus.”
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