Kevork Djansezian, Getty Images
Credit unions are not as safe as many people think they are.
Last year large groups of people switched from banks to credit unions to avoid fees, but those people are equally vulnerable to them when banking with a credit union, according to an article by The Street, a personal finance blog.
Credit unions, in general, have fewer fees, but fees have started creeping in. Some credit unions that used to offer free checking accounts have added account minimums and fees.
Why do credit unions charge fees? "Because they can," said Andrew Schrage, co-owner of Money Crashers Personal Finance, to The Street. "Many Americans still do not check their monthly bank statements, and many unknowingly pay these fees. The credit unions that remain fee-free are the ones that are truly committed to their customers."
Despite the fees, credit unions still consistently offer better interest rates on loans when compared to banks, according to the article. There are still credit unions that are fee-less as well.
Schrage offers advice for choosing a credit union.
"There are still plenty of fee-free credit unions out there, and if you start getting charged at your current credit union, simply look elsewhere," Schrage said to The Street. "No matter where you go, however, make sure you check your bank statement each and every month for hidden fees or any errors."
- Why starting a garden doesn't save you money
- 5 reasons why Utah is a great place to live
- 11 best—and worst—state tax systems
- Why babies are expensive, but could save you...
- Utah has some of the rudest drivers,...
- How much America wants to be taxed
- Customers wait all night, get new iPhone 6
- Review: Larger iPhones eliminate reason to...
- Utah has some of the rudest drivers,... 44
- 5 reasons why Utah is a great place to... 26
- Yellen says US families need to boost... 10
- How much America wants to be taxed 8
- Financial interventions don't work 7
- Why starting a garden doesn't save you... 6
- Extended warranties a big sell. Are... 4
- Dave Ramsey says: Tips for stretching... 4