Being a Better Person :: Step 1, Move Your Money
by Electric Elliot
Since graduating college, some of my sparky idealism has worn away. As a result, I’m realizing it’s not as easy to make a serious impact on society as I once thought. For a while, this was a bit of a downer. I still hope to make a lasting impact, as many of us do, but haven’t found out yet where I am best suited to do so. However, in thinking a lot about this, I came to the realization that there are some easy steps I could do to improve your life and your community and help contribute to a greater good. While this notion isn’t groundbreaking, I thought I’d present some of the ways in which I am trying to make a positive difference day to day in some clear easy steps in hopes that I may inspire others to do the same.
Step 1: Move your money into a Credit Union.
It’s no secret that the greed of Big Banks have not only greatly contributed to the current recession, and furthermore millions of taxpayer dollars have slipped into the hands of BB CEO’s thanks to the botched bailout. If this is the first you’ve heard of this do a google search and type: I have been living under a rock for the past 2 years. Continuing to leave your money in the hands of Big Banks like Bank of America and Chase only supports a crooked system and crooked businesses. This is why you should pull your money out now and join a local Credit Union.
Credit Unions are locally-based, non-profits which act like co-ops. Which means, when you open an account with one of these banks, you own a piece of the company. Here’s some internet-style bullet points which should make the decision clear.
Why should I join a Credit Union?
1. Not supporting the crooked Big Banks and their economic poison.
2. Credit Unions are local institutions, which means the money stays within the community as opposed to supporting global or national interests.
3. CU’s are non-for-profit, which means they’re not out to make a serious profit. Of course they have to survive, so there are fees, but you know where their interest lies.
4. CU’s are co-ops, which means you own a piece of the company and can vote as to what direction you want the company to move.
5. Better interest rates. You make more money.
So to recap. By joining a CU you’re: Supporting your community, not supporting a volatile system, and making more money.
When I first considered joining a CU, I was a bit concerned that their online system may not be advanced enough to handle transactions as well as my BB. I was pleasantly surprised that not only did my local CU have a system just as advanced as any BB, they also supported green by rewarding paperless accounts with even better interest rates.
Another concern of mine was receiving money abroad or when out of state. But like all banks, CU’s give you a nifty Debit/Credit card and most of the more established ones have a wide network. My CU doesn’t charge fees anywhere, and I can deposit and withdrawal in most 7/11′s or almost any other CU around the US.
Joining a CU may seem like a stretch at first, but it’s really easy to do. If you’re nervous about it, try moving some of you money first and sit on it for a couple months. You may not realize the impact on your wallet or community right away, but trust me, this is a step in the right direction. (Cue cheesy end of sitcom music.)
If this brief, non-data supported article didn’t convince you to act, maybe Bill Maher will.
Your turn:
Have you joined already joined a Credit Union? Why or why not? Share your experience!
Comic by RR Anderson. Some other CU comics by RR.
Need more convincing?:
February 24th, 2010 at 9:35 am
Shortly before my old bank, Venture Bank was taken over by the FDIC after Venture invested heavily in risky mortgages.. I withdrew all my money and transferred into a Credit Union (Tapco). I’m earning way more interest money than my cheap-skate Venture Bank ever paid.
Screw Banks! Go with a Credit Union!!!!
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February 24th, 2010 at 10:58 am
I still use Bank of America, for a number of reasons:
1. No fees.
2. I only use checking, so I don’t pay them anything.
3. Since I’m not paying them anything, they’re not making money off me, and since I’m not using their savings account, they can’t loan my money to other people.
4. I know I’ll be able to find an ATM anywhere almost anywhere I go in the US.
For savings, I use http://www.smartypig.com/, which has a better savings rate (2.01%) than any local credit union.
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Electric Elliot Reply:
February 24th, 2010 at 1:37 pm
Smart Pig seems like a responsible system. I get a 6.00% savings rate at BECU but if my balance goes past a certain level it goes down to 0.50. With the right maintenance that’s a far better rate than anywhere else.
Although you’re not actively supporting BoA you are passively by being their customer. Certainly your route is a good way to go but you’re missing the opportunity to support your community and not a company which damages nations.
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Liam R Reply:
February 24th, 2010 at 2:11 pm
Well, on your first $500, you may get 6.17%, but that’s $30.85.
x = amount in savings under $500
y = amount in savings over $500
BECU: Yearly Interest = .0617x + .005y
SmartyPig: Yearly Interest = .0201x
Solving for $500:
BECU: $30.85
SmartyPig: $10.50
Solving for $2000:
BECU: $38.55
SmartyPig: $40.20
So for the current $3000 that I have in savings, it makes more sense for me to use SmartyPig.
Also, one could argue that I’m not supporting BoE at all, but hurting them. After all, they’re wasting valuable time maintaining my account, sending me e-mails, my data is taking up storage space in their system, etc. while I give them nothing back. Also, they give out debit rewards, so I’ve made about $50 off of them since I’ve had the account.
However, maybe I’ll open up a savings account at BECU just to throw $500 in and get my $30.85 a year. Does it cost money to maintain the account?
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Electric Elliot Reply:
February 24th, 2010 at 2:33 pm
Cool, thanks for the math, Liam. Smart Piggy is definitely a good option too.
You could certainly say you’re doing more harm to BoE than good, but I guess I’d say you could be doing more good by not dealing with them at all and instead going local.
It doesn’t cost money to maintain an account. They keep $5 of your money for the life of your account but you get it back when you close.
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Liam R Reply:
February 24th, 2010 at 5:01 pm
Sure, but I’d only be doing good in the community if my support actually made BECU money, which it only would if I used a savings account. I guess maybe they could claim they have one more member, but that’s minuscule.
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Chris Van Vechten Reply:
February 24th, 2010 at 5:56 pm
If you’re really smart, you’ll take that $3000 and open 7 (not 6) $420 saving accounts and collect 6.17% interest on all of them. You’d make over $210 a year in interest that way. I bet there’s some clause that prohibits this though
Chris Van Vechten Reply:
February 24th, 2010 at 5:53 pm
When I Joined BECU, it was 7.5% for the first $500 and then like 1.75% for everything after that in the savings account and like .50% for everything in the checking. Considering I had just come from WAMU, where their was 0% for checking and I think only .50% for savings, BECU was a really great deal. That was 2007, since then, things have kinda gone down hill but BECU has more or less held its own.
Is smarty pig an online bank? How does that work? What kind of fluctuation does your interest rate see?
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Liam R Reply:
February 25th, 2010 at 10:15 am
It’s an online bank, so it doesn’t work very well for checking. That’s why I keep my Bank of America checking account. It’s just an online front for this bank in Iowa that offers high interest rates.
I believe the interest rate has gone steadily down from 3.5%, but that’s happened everywhere. They still have one of the highest rates around. You can compare bank rates at http://www.bankrate.com.
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February 24th, 2010 at 11:15 am
It’s even more important to move your money if you don’t have any money. My old bank used to screw me every time my balance dipped low, it was like they went out of their way to clear everything in the order that would cause me maximum pain. Now I’m with BECU and I rarely get socked with an overdraft fee.
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Electric Elliot Reply:
February 24th, 2010 at 3:07 pm
BECU seems to be a strong choice. My only concern is that I’d do more good supporting a hyperlocal CU. Thoughts?
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February 24th, 2010 at 1:05 pm
Correct me if I’m wrong, but didn’t I tell you to join BECU 2 years ago Elliot.
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Electric Elliot Reply:
February 24th, 2010 at 1:10 pm
Hah, you definitely did. Change works slow within me but when it happens it’s swift.
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