What I noticed about the banking industry:

While working at two of the largest financial institutions in the Twin Cities I realized that they were all focused on money -GREED-. I recall convincing consumers to refinancing their home when in reality all they called for is a balance on their checking account. I recall offering cash advance/overdraft protection on checking account when consumers called in with an already negative account, and recommending a credit card or personal line of credit as a way to consolidate debt. These selling tactics are all fueled by greed. The banks knew that most consumers wouldn’t qualify for the loans but they did know the rule of large numbers.

Now that a lot of the banks have seen regulation and a high rates of default by consumers they have figured out new ways to create income. Today, banks are no longer offer FREE Checking Accounts – they are charging monthly fees just to have an account with them, fees for debit card transactions, fees for ATM use, monthly minimum fees, and some banks charge you to talk to a customer services, fees to transfer money from one account to another, all while offering you 0% interest on your money. It use to be if you deposit money into the bank you were acting as if you were lending money to those who needs it with a small return on your money but today that is not the case. As you can see the world of banking is changing right before our eyes.

Why I recommend banking with Credit Unions:

Credit Unions have been a staple in local communities for years. They have been providing financial education to the community, offering great rates on items such as: mortgages, auto loans, and personal loans all while providing excellent customer service to its members. Have you notice that when I referred to the banks I used the word consumers and when I talk about Credit Unions I used the word members. That’s because as an account holder with a credit union you are considered a members. Credit unions are non-profit organizations owned by its members. The more money you have deposited, the more ownership you have in the credit union. You also have an opportunity to become a member of the board or have voting rights to elect board members. Credit union also offer FREE Checking with no fees, access to thousands of ATM with no fees, and most importantly no minimum balance required (in most cases – check your local credit union).

For more information about credit unions visit: http://ncua.gov/

To find a credit union in your area visit: http://www.findacreditunion.com

Mark A. Wingo – Financial Expert | Author | Speaker | Entrepreneur | Fundamental Strategist