I never understood people who dont put their money in the bank. I know someone who has had $400k in cash sitting in safe at home for the past 10-15 years. Even at today’s absurdly low rates he’s still given up thousands of dollars in interest in that time period.
I’m more of a credit union kind of guy, personally. Is that the same thing?
that person is probably a drug dealer. They always keep a sizeable getaway stash in case of emergencies
Same thing on the outside, but supposed to be different. CU’s are tax exempt, so likely able to offer higher rates. Initially, meant to benefit low-moderate income ind. The common bond definition, however, tends to get stretched a bit. I think you’re a tax guy by previous posts? so possibly this was sarcasm…
Anybody still bank at a face-face teller? Or going completely mobile/internet?
I agree. It’s nice to have your bail money on hand too.
Banks are nothing but legal ponzi schemes run by morons.
Sometimes when I need to do something that I can’t do at an ATM, get a cashier’s check, get cash that isn’t only in $20 bills or whatever.
I think the idea of the credit union is that they are owned by the depositors, and therefore what would be earnings in a public company get recycled into the interest paid on deposits.
Though presumably, there must be some dividend-like aspect too, since earnings aren’t fully predictable even if they come mostly from loan activity. I would think that interest rates would be set to a conservative estimate of earnings (plus a margin of safety) and then there might be a special dividend that constitutes the less predictable residual component.
Sounds like you are describing a mutual and not a credit union.
A credit union is a mutual is it not? Customers derive votes through relationship.
Yea it is a type of mutual. But there are non-credit union mutuals. And just because it is a mutual doesn’t mean it doesn’t make income or it is all shared. But that varies greatly between types of mutuals
So a credit union is a type of mutual. And what I described is (your words) “a mutual not a credit union”.
What is your taxonomy of organizations, then.
I’m not saying that my explanation is perfect, and I am sure that there are some structures of credit unions that combine depositor ownership with outside sources of capital, and even credit unions that evolved into banks but didn’t want to lose the branding value of being called a credit union.
But I do think I got the principle of how a credit union works right, though if it’s wrong, I’m happy to be corrected. Just correct me with details, rather than say something like “you’re describing a fruit, not an apple.”
Right a mutual uses outside sources of capital and depositors gain voting rights through relationship. Whereas, in a co-op those with the relationship contribute the capital as well. At least that’s my interpretation…
There are the unbanked, the underbanked, and the banked. I’m probably overbanked.
I only go to a teller when I’m about to travel to South America and need to select my bills to make sure they’ll be accepted by the casas de cambio.
Ok. I did not know that distinction (or didn’t appreciate the subtlety). Now I do. Thanks
See? We really all can just get along.