Credit Unions are Banks

I find it odd that people are following other people’s urging to transfer money from banks to credit unions. It shows the basic misunderstanding of what a credit union is. A credit union is basically a bank with a difference regulatory structure. Many of the reasons I hear for moving from the banks to the credit union seem to have no historical reference. Credit unions, just as banks do, evict mortgage holders who are delinquent on payments.

Credit unions have been recipients of large Government bailouts. It seems most protesters of banks have forgotten the S&L scandals of the late 80’s and early 90’s. Moving your money for the excuse that banks received a bailout is a bit of a moot point.

Credit unions aren’t all the same, most apply the same fee structures as regular banks. After all there are costs involved in operating branches, ATMs, and processing of loans.

Now there are reasons to have money in a credit union. Since they are not for profit organizations fees are used to fund the operations of the credit union. Other than this the other reasons seem like they are coming from misinformed people.