|  Dear
Dollar Diva,
I am looking for a place to open a savings account and
a checking account. I am considering setting up a direct deposit with a credit
union. Is that a wise thing to do, or should I stick with the banks? -- Brandy
 Dear
Brandy,
Credit unions provide the same kinds of services that banks
do. You can open a checking account, buy a certificate of deposit and get a loan.
Some will even sell you stocks, and offer you a safe-deposit box.
Generally,
if it carries National Credit Union
Administration insurance, a credit union is a good place to take your business.
For-profit banks are in the business of making money for their shareholders. Credit
unions are not-for-profit organizations that are supposed to focus on service
and savings for their members. Take your business to a credit
union instead of a bank and expect to receive a higher interest rate on your savings
and pay a lower rate on your credit cards and other loans. Bankrate.com's "Compare
credit union, bank and thrift rates" compares the interest rates on five of
the most common financial products: a new car loan, 1-year certificate of deposit,
money market accounts, credit cards and 30 year fixed rate mortgage. Credit unions
win every time. But don't get fooled by statistics. The averages
come from a survey of the top 50 credit unions, banks and thrifts in the top U.S.
markets. Your particular credit union may not match these averages. And you may
need other services, such as ATM transactions, that a credit union may charge
more for than a bank. When it comes down to picking a financial
institution for yourself, visit or call the banks and credit unions you are interested
in doing business with, and have them quote rates on the products you need. Compare
the service you receive as well as the rates: you don't want to put your money
in a place that's going to give you grief every time you do business with it. | 
