Credit Unions

skoobydoo

I would be really interested to hear of people's experiences of Credit Unions. I've never heard Martin recommend them yet they seem to offer an opportunity to save regularly and also borrow at very reasonable rates. Is there a reason MSE doesn't support them?

Techhead_2

I'm sure there is an article on them. With links to several sites.

zppp

http://www.moneysavingexpert.com/banking/credit-unions

Milarky

skoobydoo wrote: »

I would be really interested to hear of people's experiences of Credit Unions

Not good. My 'area' credit union - and therefore the only one eligible to join - paid 1.1% on savings last year - and now are charging 2% per month for new loans. If that wasn't bad enough they are finessing what they can charge by introducing a an 'application fee' which increases in amount with the size of loan [Clearly that's not cost related - the size of a loan makes no difference to the 'cost' - which is covered by the interest rate - so it's a questionable tactic to charge people higher than 2% per month the loan - 'questionable' because 2% is the interest rate cap for CU loans] If they can't operate on differentials smaller than 23% in this climate what 'social good' do they imagine they are doing?

Oh, I've just worked out the answer to my question - by 'sticking around' until things pick up and they can suddenly 'afford' to offer members a better deal...