How Many Of You Have Left A Credit Union Once You Have No More Use For Them?

denki | Feb 26, 2019 | 158 posts since 2019

How many of you have left a credit union you joined once you have no more use for them?

Though I belong to nine credit unions now, I also left 3 of them in my lifetime

That was probably a bad idea. Because even if you don't need them now, they might have good deals later.

Of the 9 credit unions I belong to currently, I have "real" accounts at 6 of them. The other 3, I keep for the future, in case they have good deals (while being sure to do at least one activity a year to avoid inactivity fees.)

So how many of you have left credit unions you once belonged to?

At the time, I didn't think about it... that I probably should just stay with them in case there's something good in the future.

#1 I left because they went from being an HSA rate leader to being in the rate toilet, and I didn't have anything else with them.

#2 I left because they merged with another credit union, adopting the larger credit union's terrible policies, so I cut up my credit card and left them.

#3 I left because I was going to get a CD w/them, but by the time the joining process was finished I found a better deal elsewhere.

Place #3 I see popping up with good deals from time to time. Place #1 not in years, and Place #2 was too small to be on DA's radar.

But I really should have stayed, and like the other places, just do one transaction every few months to keep it "active."

So how many of you rate chasers and the like have simply closed accounts with credit unions once you're done with them?

5

Answers

denki | Feb 26, 2019 | 158 posts since 2019

And along the same lines...
Has anyone left a credit union... and then re-applied for membership with them again later?

I'm wondering how I would be treated if I tried to re-apply at one of the 3 places I left before.

4

h_meister | Feb 26, 2019 | 32 posts since 2014

I have about 15 Credit Union relationships and would say that all but two have been opened to obtain high yielding CD rates. I'm hesitant to close a credit union relationship because of the amount of leg work in opening an account. My practice to maintain the relationship after the initial "high rate" CD matures, and then will open what I see is the best rate / term CD at the minimum CD opening balance,usually $500 or $1000. I do to avoid dealing with dormant low balance savings accounts.
Regarding closing accounts, I think I've closed four or five over the past 15 years. For the most part they've been ones that I qualify for geographically. I've usually closed them when their rates are seriously non competitive for several years or if the CU is poorly run. The only credit union relationship outside these parameters I closed was Logix, which I had a mortgage with and was not willing to match a mortgage refi rate with a home town CU.

7

paoli2 | Feb 26, 2019 | 2,641 posts since 2011

Along these same lines, are we just allowed to keep our credit union memberships open if we may not be using them and not have to pay some type of fee for keeping only the $5.00 in the savings and showing no other activity for some time. Don't credit union accounts go dormant like other accounts can if we don't use for long periods and all our pass CDs have matured? Thanks for any info you can provide.

3

AnnO | Mar 2, 2019 | 129 posts since 2018

You need to set up automatic recurring small transactions between the CU's base share savings account and another account elsewhere. I send $1 in once a year and then withdraw the $1 once a year but 6 months later. This is more than enough to keep most institutions from going dormant.

1

Ally6770 | Mar 2, 2019 | 4,294 posts since 2010

I am leaving another credit union next month after 2 of my Roth IRA's mature. They started charging
$35 to transfer an IRA. But the rates also are not good and I am also trying to consolidate. I found a way around the charge without traveling there. The last credit union that tried to charge I was able to get them to close the IRA and write the check to a Roth IRA, to the new credit union, for the benefit of me. I mailed the check myself. These banks and credit unions don't tell you how you can avoid the charge and the one I am closing next month was quite challenging to get around the charge. They charge for the last IRA you have with them. You just have to keep thinking of ways and then ask them. I did it on a chat. This credit union also said if no deposits are made each year in your membership savings or you do not have another account with them the $5 in membership savings would be taken. The $35 dollars would be charged only without another IRA with them. I really don't care how far away the institution is, I just want to have fewer places to have accounts now. I did use many credit unions throughout the years. I took care of the money for the place my husband worked for and with the township I worked at and for us. Was taking care of 54 accounts. I used ledgers for each and I still use ledgers. I am retired, my husband has passed and it is much easier now.
All accounts can go dormant. CD's do not usually go dormant but there are places that they can go dormant with or without the interest being re-invested and or the CD renewing. The institutions are suppose to notify you at the last mailing address they have for you. So now I still will be chasing rates and consolidating where possible. For us oldsters Navy Credit Union is a good place for adding
to the IRA's that you have with them. For many years you could add to your CD's the first 3 months or so of each year. When your accounts get too much in them you can transfer (I have just transferred Roths) and use them to do my Roth conversions also. They have not charged when taking out more that your RMD. I have been very fortunate to get a high interest rate with them for many years and they are very nice and easy to work with.

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