Banks Vs Credit Unions What's The Difference? - YouTube

Robert okay Robert, so why do you use a  credit union? Um less fees they seem to  

care about their customers more okay um you're  not just a number like the big monolithic banks.  

right right right um better interest rates. So  we just spoke with our friend Robert here so  

now you understand why a lot of people use credit  unions because the money goes back to its members.  

So you may be asking okay Rom how come I've never  heard of a credit union? and this is actually a  

valid point it's funny I actually have this  conversation actually with our great camera  

guy here who's 20 young and he said hey how  come I've never heard of a credit union? well  

I want you to ask yourself one question. When  is the last time you have seen a commercial for  

a credit union? Think about it when you watched  the Super Bowl, a basketball game, the NBA finals  

baseball, hockey, I want you to ask yourself when  is the last time you've seen a commercial for a  

credit union? You don't see it, typically.  Banks spend millions of dollars to market  

and banks are in constant competition with each  other so Wells Fargo competes with Bank of America  

which competes with Chase they're  all in this competition for you.  

That costs millions of dollars to promote. So who  pays for that? You pay for that! When you're with  

the bank and you have to pay that in a form of  higher interest rates, higher fees that money is  

not free. If a bank is spending 10 million dollars  a year to market that money comes from somewhere,  

it comes from you and it comes from you when you  pay higher interest rates you pay more fees you go  

to a bank and go do a deposit at another bank or  try to take money out and you'll sometimes hit you  

with a three four dollar fee just to take money  out. Think about that may not seem like a lot,  

but when you do this to billions of members that's  a lot of money. So remember these banks spend  

billions of dollars to market to you. I don't even  think it's millions, it's probably billions if we  

look at it overall. And all that marketing  comes at an expense to you as an individual.  

With credit unions you don't really see this  type of marketing. And the money goes back to  

its member in a version of lower interest rates  and you also have to remember with credit unions,  

they're for non-profit institutions. Banks  have to be profitable for their investors.  

So at the end of the year the bank has to show a  profit for its investors or shareholders. Credit  

unions don't have to do that, so the credit unions  aren't under that stress. Think of it this way,  

imagine a big company, a big hamburger  place and a small hamburger place.  

A big hamburger place may charge you more because  their overhead is higher, they have more staff,  

there's more electricity there's this bigger  overhead that has to be paid and who pays for that  

you pay for that as the customer. With the smaller  restaurant for example or a smaller hamburger  

place they may not have that overhead like a food  truck and the bottom line is just to make good  

food because they don't have all these ridiculous  rates. So you may be asking yourself what should I  

use should I use a bank or should I use a credit  union? Well we're going to go over a couple pros  

and cons each. so I myself actually have both I  have a bank account and I have a credit union.  

I do like the credit unions a lot more for the  personal experience they're much more personable,  

the interest rates are better. I had an issue one  time where I got billed some stuff and I had to  

challenge it I dealt with the credit union they  got it taken care of very quickly. The experience  

was much better. The problem with credit  unions typically someone like me who travels  

the credit unions are not worldwide like a bank  is, like a chase for example. So for example,  

I do a lot of different investments online with  different accounts with Ameritrade I have some  

cryptos and those accounts sync very well with  bank accounts. So when you do your deposits it  

gives you the option of who's your bank and it  syncs these accounts very well and the mobile  

versions are great with credit unions their mobile  and online platforms cannot compete with these  

billion dollar banks they just typically can't.  So when it comes down to like I need something  

efficiently done for my online investments  banks are going to typically be better for that.  

Credit unions are going to typically better when  you need an interest rate at a lower percentage  

or if you're just doing local things and you're  not let's say investing online maybe you're a  

young person you're just barely making money  and just trying to save. I would suggest going  

the credit union route. Because again, their  fees are going to be less, they're much more  

personable and you're a part owner of the credit  union when you sign up. So to sum it up banks are  

going to be better for online transactions. So  if you're doing a lot of online payments like  

myself with a small business owner banks are  great because the platforms for online payments  

syncing my accounts is much better. But if  I'm a local just regular guy and I want to  

I'm not say running a business or doing  all that I would suggest a credit union.  

So if you remember Wells Fargo back in 2015  2016 I believe it was. Had did a couple scams  

and what they did was they made some fake bank  accounts and... wait what this is hello wait what  

I thought I heard something you yes you like  subscribe and stay away from this big blanks.  

you must subscribe so we can win together and give  a like button hit the like button thank you...  

okay uh thank you. What should you do well it's  gonna depend on a couple different things I'm in  

my 30s I have a bank and a credit union I use  my banks for bigger transactions especially  

sometimes when I travel out of state or if I'm  doing my online investing where I need my banks  

synced in with these platforms so I can  transfer money in and out fairly quickly.  

if I'm not running businesses and  I just want to have something for  

personal I would highly suggest a credit  union again the interest rates are better  

so let's say you want to get a car one day  and you don't have the full amount of money,  

I as in previous videos I suggest buying cash  but if you don't and you need to maybe get some  

kind of an interest rate I would definitely go  to the local credit unions as they are going to  

typically be a lot better on their interest rates.  Banks are also good too for their own way so it  

ultimately comes down to personal preference and  you have to decide what's going to be best for you  

both have their pros and both have their cons  banks there's online mobile apps are much better  

to use. Credit unions don't have that capacity  but again credit unions are going to have better  

rates so it really comes down to you and what  you prefer. So if we get this video to 200 likes  

I will do a part two where we actually do what  the difference is between a debit card a credit  

card and what a prepaid debit cards I'm sorry a  prepaid credit card. You talk about these what you  

should start doing as a young person if you're  trying to build your credit up to potentially  

let's say buy a home or a car or something of  great expense why you should start building  

credit now at a young age. Don't wait till you're  older start doing it now even with small things  

because it will really will make the difference  when you're older. please remember to like and  

subscribe it helps us continue to provide you  educational content and I think wait what was that  

please like subscribe we will see you soon okay uh  thank you a weird machine at the credit union. Rom  

wants you to succeed and will continue to bring  you unconventional money making content for free.  

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