AVOID State Department FCU -- They CHARGE You $2 Even For "Free" Co-Op Atms!

State Dept FCU is BAD for everyday banking if you don't live nearby. They're the ONLY Credit Union I'm aware of that CHARGES YOU AN ATM FEE of $2 TO USE EVEN A CO-OP ATM! Their language (hidden deep in their website that's impossible to find on its own without a google search) says that if you use a Co-Op ATM you won't be charged a "surchage" but you WILL be charged a "nominal" "$2 Transaction fee" for each transaction you do via a Co-Op "surcharge-free" ATM (if it's a non-Co-Op ATM, you'll be charged that $2 Transaction fee PLUS their ATM surcharge PLUS the other bank's ATM surcharge). But even for staying on the Credit Union Co-Op network, they STILL charge you a $2 "transaction fee" for each transaction you do on the "surcharge-free" Co-Op Network.

Wow. That's BAD. So they don't "surcharge" you, they "transaction fee" you instead. I've NEVER heard of this from any other Credit Union doing this, and I belong to 4 of them, and research credit unions all the time. Co-Op ATMs are supposed to be fee-free for credit union members (as long as it's a Co-Op ATM, and the credit union is on the Co-Op ATM network). Not here. That's just scummy.

I was considering opening an account here as well, and perhaps in the future when my current IRA expires, moving it to State Dept FCU. But not anymore. I have no problem banking with institutions not in my area... but I don't like getting charged $2 each time (especially when no other credit union does it) for doing things like deposting or withdrawing money from Co-Op (supposedly surcharge-free) ATMs.

So consider yourself warned, to read the fine print about all the hidden fees they charge. Unless it was an exceptional rate and you never touch the money for years at a time, I'd avoid this place. There's NO reason for them to charge this fee (when sticking with Co-Op ATMs). NO other credit union I'm aware of does this.

AVOID.