Why would you choose a credit union over a bank?

Credit unions are known for having lower checking account fees and better customer service than banks. Because credit unions are smaller local entities and are nonprofit, they have less motivation or reason to charge as many fees as a national bank looking to manage overhead and turn a profit.

A 2012 Bankrate survey found that nearly three-fourths of the credit union institutions surveyed did not have minimum balance requirements to avoid fees. Bankrate also reports that credit unions customers saved more than $6 billion in fees in 2011. Credit unions often have better interest rates on loans and interest-earning accounts as well.