The bull case for credit unions

The bull case for credit unions

(originally posted on OCTOBER 07, 2011 at the Motley Fool.  Click here to read from source.)

Are there any credit unions that are publicly traded?  All of these new checking fees are driving people out of big banks, and credit unions have better interest rates.  They are also less regulated, so it is easier for them to lend.  A lot of people are leaving big banks and dont care if the credit unions are fdic insured because they think all of the big banks will collapse and dont really understand FDIC insurance.  if the big banks are making the credit unions trade at low p/b ratios, I think they may be a steal, especially because 1) they dont hold a lot of european debt like the big banks do 2) the us economy is technically still growing

Am I missing anything, or is this a very bullish combination?  I am not a credit union expert but they seem to be gaining market share and dont have the same problems as the big guys….could be an excellent opportunity.

Comment:  I’ve been “bullish” on credit unions for years.  But once you join a credit union you become a “shareholder”, in that the earnings are paid back to you in the form of “dividends” on your account balances. You are also rewarded with lower interest rates and less fees.  No need to hire a fancy broker to reap those benefits.

Comment:  Dude, I’ve been with my Credit Union for 22 yrs (God, I’m getting old)

It’s Awesome, they treat me great. My CC rate through them is like 9.5%. And if I ever needed a loan they would be more then willing to work with me unlike the big banks.And they don’t nickel and dime me with fees

So if you want to invest in a Credit Union just open up an account. Probably one of the best investments you’ll ever make.


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