Give Yourself A Raise By Joining A Credit Union

Maybe I never joined a credit union because my bank account balance was always low.  Earning interest on $0 is still $0.  Now that I am working and living in the real world I don't live paycheck to paycheck.  I've got a pumped up emergency fund to go with my savings and checking accounts.  That's one big pile of cash that could be earning interest for me.

The problem was that I was banking at Chase and they are a regular bank (herein referred to as an evil bank).  An evil bank is for profit, and definitely not for profit of their customers, like me.  That's why I made the decision to leave and go find a credit union.  Credit unions are non-profit banks that pass their profits onto their customers, like me.  Now I can get on board with that.  I love money and if you want to give me money just for banking with you, well that sounds alright to me.

I started to look around at credit unions in my area.  I was looking for the best paying interest rate.  What I found was a variety of credit union rates, from 0.005 to .0311%.  Now obviously 0.005% is less than 1% interest, so that sucks but it's still better than the 0.001% I was earning with Chase.  I picked the credit union that is paying out 3% on my money.  So essentially I just gave myself a 3% raise just by moving my banking over to a new bank.

They offer free online banking, no monthly fees, ATM fee reimbursement, and a network of credit unions in my area to offer more convenience for me.  My new credit union will pay 3% on my first $11,000 and 1.5% thereafter (up to $51,000).  Since I haven't maxed out the full $51,000 requirement I know that every dollar I have is making AT LEAST 1.5% in interest for me.  When I reach the max or find a better investment I will move my money to there, when appropriate.

Pretty much all things are equal between my new credit union and Chase, except for that sexy 3% interest rate I will now be getting.  And just as a quick side note, my credit union at work pays 4% on my first $1,000 with no requirements (just leave it sit there and earn interest).  So I left $1,000 in that account and took out the rest to deposit in my new account.

If math isn't your friend then just do this: Take your entire account balance, all the money you have. Multiply that number by .03.  That is your yearly interest gain.  Take that number and divide by 12 to figure out your monthly interest gain.  So whatever your numbers are that is how much you would be earning yearly or monthly on 3% interest.  If that number doesn't impress you then your bank account balance is probably pretty small.  We will address that issue in the future.

Example: $10,000 x .03% = $300 a year in interest.  $300 / 12 months = $25 a month in interest.  That would pay my water bill.

If you're freshly unplugged from the financial matrix dream land you've been living in then I highly suggest you look around for a credit union to join.  It is very quick and easy way to start showing financial responsibility.  Go ahead and give yourself that raise.

Chase, I Gotta Let You Go

I love the first of the month.  Everything on my Mint.com is green, all my budgets have yet to be blown and my account balance is high.  It's almost like financial do-over, 12 times a year.  It's a chance to wipe the slate clean and start fresh with a new attitude and new plan of action.  The goal is simple: earn money.  Whether you earn it by working, spending less or savvy investments it's all about making money.

When the first of this month rolled around the first thing I did was check my checking and savings account to see how much interest I accrued.  When I looked at my Chase accounts I was greeted with a whopping credit of... $0.12!  That's just enough to piss me off.  How insultingly low is that?  I have found more money on the street than that (6/2/11 I found $0.14).  Finally, I have had enough.  I need a new bank, preferably a credit union.  Regular banks don't make money for me.

My experience with credit unions has been limited.  I've only been a member of my credit union at work for a short time.  But I hate them already and I want to leave.  Their online banking is weak.  Their mortgage department is not my friend.  They are not accessible 24/7.  They do have some very attractive rates and programs though but for now I'll focus on their rates and save their programs for another time. 

The best rate they are offering is a checking account that pays 4% annually on the first $1,000 and 0.0025% there after, until your balance goes over $10,000 then they adjust a smudge.  So, essentially they pay you $5 a month, or $60 a year.  It's a great rate for my first $1,000 but after that it's sucky and on par with Chase (who's an evil regular bank).  What I need to find is a good place to put my money that's only earning a frosty 0.0025%.

Since I'm still young and unrich (not poor, unrich) I have time to find out where the best place to put my money is.  Whenever I crank up my account balance into baller numbers I already need to have a home for it.  I want all my little George W's to go out and meet Mr. Abe and be introduced to the Jackson's living down the street, then invite them all over to a party in my wallet.

Now my search for a new credit union has begun.