credit unions

The benefits of a credit union vs. a bank

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Dodge minimum balance rules
Dodge minimum balance rules | Image Source/Getty Images

Dodge minimum balance rules

Pro: Accounts have fewer strings attached.

While many account holders at banks have been forced to adjust to higher minimum balance requirements, 76% of the institutions surveyed in the 2016 Bankrate Credit Union Checking Survey had no minimum balance requirements to avoid fees.

Con: Accounts may have fewer bells and whistles.

Richard Hunt, president and CEO of Consumer Bankers Association, says larger banks have greater resources at their disposal than credit unions. These resources give big banks the ability to make investments in emerging technologies sooner than credit unions can, although the gap is narrowing. Depending on the size of the institution, that may mean the big bank down the street offers a more muscular online banking site or more refined mobile payments options.

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