Checking Up on the Local Credit Union
Where I live, I can join the local county credit union. I don’t need to do anything but prove that I’m a resident.
Every once in a while, I think about joining a credit union. I started a new job with a large company and I checked out my credit union options. Honestly, there weren’t very many through my company. The strange irony being, that there are about 30 credit unions across the nation that were founded by company employees back in the day. But none of the existing ones are convenient to me.
While perusing the Arlington VA Credit Union website, I see they have 12 month CD’s still paying out 4% APY, with an option to bump up. I’m thinking about it since ING Direct is only paying 3.4%. I still keep about $1200 in CD’s at ING at 5.0% APY or slightly better, but those are about to expire in the next few months without a great rate available. These CD’s form the core of my emergency fund, which I’ve let dwindle and haven’t built back up.
I know I should be constantly building back my savings. But right now the plan is to save by spending. I’m tossing lots of money at my credit cards since the interest rate is much higher than any savings rate I can find. But that doesn’t mean I shouldn’t shop around for these small CD’s I have since I have no intention of cashing them out to leave myself with nothing to fall back upon.
ctmom96 wrote:
I’ve been a member of the same credit union for 25 years - yikes, has it been that long? Anyway, even though I’m not an employee there any more, I still keep a savings account open - the service is great, and they’ve had the best auto and personal loan rates anywhere. I wish they were closer, but it’s still worth staying a customer.
Posted on 25-Feb-08 at 9:59 pm | Permalink
Chief Family Officer wrote:
I think paying off those credit cards instead of building up your savings is a good move right now. It looks like your savings are enough to cover reasonable emergencies, so you can probably get away with not building it back up right now. The interest is so paltry that it’s not really worth it!
Posted on 25-Feb-08 at 10:46 pm | Permalink
David wrote:
My primary bank, since I was 12 or so, is my father’s former employer’s credit union. The company is long gone, but the credit union now has a concert arena named after it…go figure.
I always have my eyes peeled to see if there is a better bank out there, but I have never found one. I have an ING savings account too, but like you, have found better rates in CDs and Money Markets at the credit union, albeit with higher required balances.
But like ctmom96 said, the real benefit comes from the service…and the loan rates. I can walk in and get an auto loan 1-2% lower than any dealer could give me, and their mortgage rates are among the best around too.
So I guess that is a long-winded endorsement of credit unions!
Posted on 11-Mar-08 at 11:13 pm | Permalink