Credit Unions Promoting Free Checking Accounts
Free checking is at its best form for the presence of Credit Unions. As per Bankrate’s 2014 Credit Union Checking Survey almost 72% of the US 50 largest credit unions are offering free checking accounts which means no service fees and not even any other kind of fees no matter what the balance is. The number of credit unions offering free checking is in a better position than the free checking options offered by banks even though their position is also stabilizing as per the financial analysts.
The Checking accounts that are not free can also be used without giving any such fees like with that of free checking accounts. Free checking accounts are reaching great heights owing to the facts that Credit Unions are more concerned about the benefits and requirements of their members rather than serving the interests of the shareholders. The requirement of maintaining a minimum balance is not that mandatory for the holders of free checking accounts. Credit unions are not concerned with profit making aspects and believe in quality services to its members unlike sales maximizing profiteering trends followed by banks.
Credit unions and credit union members genuinely value the concept of free services that has prompted the free checking account holders to rise dramatically in numbers over few years. There is a substantial difference between free credit union checking and Free Bank checking that becomes visible while going through their statistical presentations. 30% of the credit unions surveyed so far reveal the facts that they charge no fees to customers using out-of-network ATMs and also provide for out-of-network free withdrawals per month with some limits. An overdraft fee also known as NSF fees has been recently slightly increased but still it is lower than that of charged by banks.
The numbers of members looking for taking the advantages of free checking accounts under the credit unions are always growing in the wake of the great recession due to its lower fees. A remarkable shifting of consumers from banks to credit unions has been witnessed over years.
It seems with the support of the vast membership credit unions will continue its services and offerings but it charges its customers when they do not use the services that they signed for. Like in case of bill pay the credit union has to pay a part of the cost to the processor so when a customer stops using it they are charged by credit unions. Furthermore credit unions also cannot offer free checking accounts to whoever comes to them as these are meant for members like some engaged customers.
