I used to bank with Wells Fargo—one of the big corporate banks. After reading an article on credit unions in Co-op America’s Real Money newsletter some years ago and discovering that I already knew people who were long-time members of credit unions, I made the switch. Though it took some time for me to actually decide to commit to making the switch, it was easy to do so, and I’ve never considered going back to one of the big banks that rob you of your money and the earth’s resources.

The most compelling reason to make a switch to a credit union is that instead of big banks taking your money, a credit union will actually give you money—think of it as little bonuses every month. I’m banking with BECU (it’s a credit union available to any Washington State resident) and it offers a 7.50% Annual Percentage Yield (APY) return rate for member advantage checking account balances up to $500. For your checking account balances above $500, you’ll receive a 0.5% APY return rate. Compare this to Wells Fargo’s 0% APY checking account return rate and you’ll easily see why you should make the switch too.

It gets better for savings accounts. BECU offers the same high return rate on the first $500 that it offers for checking accounts (7.25% APY) for member advantage savings accounts—a good reason to keep your balance at a minimum of $500 in both your checking and savings account with BECU. BECU offers a 1.76% APY return rate for member advantage savings accounts on the money above the first $500 that you keep in your savings account. Wells Fargo currently offers only 0.25% APY return rate on balances up to $999 and only 0.50% APY return rate on balances over $1,000—a laughable return rate when comparing rates with the much better investment for your money that credit unions can offer.

How can credit unions afford to give you free money and big banks cannot? BECU’s website clearly and concisely sums up the difference between credit unions and banks: “There are many significant differences between credit unions to banks. Credit unions promote the financial well-being of members, including those of modest means, through a system that is cooperative, member-owned, volunteer directed and not-for-profit. Unlike banks, credit unions exist solely to serve their members, not to pay high dividends to an outside group of stockholders. Credit union income is returned to members and that's why credit unions can offer higher interest rates on deposits and lower rates on loans.”

Credit unions are a financially greener option for your money, but what about being eco-friendly greener?

I sent an email with this question to Katye Long, Public Relations for Credit Union National Association, Inc. One of the items she touched on was the shared branching network: “Additionally, many credit unions share branches or belong to shared branching networks. The big reason for doing this is to offer their credit union members availability to more branch locations for added convenience. However, I think a case could be made that an added benefit of this practice is that they are saving space by sharing branches (and aren't building the elaborate mega-branches of some of the big banks out there).”  

While big banks spend big money on big advertising, big branches (think of all those big skyscrapers named after banks in downtown Seattle), and brand signage nationwide, little credit unions do not. Credit unions partner with other credit unions and in turn share the money saved with their members. Most credit unions are hooked into a network of shared credit union branches. Just look for certain shared co-op branch logos (the logos are on the back of your credit union debit/credit card) to avoid ATM fees. CUSwirl  has a handy online network branch finder and highlights their “4,000 locations in 46 states, Puerto Rico, Japan, South Korea, Italy and Germany." If you’re outside of one of these five countries, you can still visit any ATM—you’ll just be paying the ATM service fee.

Some credit unions are individually implementing new, unique green practices. Katye tipped me off to the Veridian Credit Union in Iowa that is offering eco-friendly corn-plastic cards to their members instead of the traditional plastic cards. (Read my previous post on the many other surprising eco-friendly products being produced today with corn plastics.)

A unique new green practice I’ve seen at BECU is their no-envelope deposit machine at the Broadway Market ATM on Capitol Hill. A BECU representative informed me that they are expanding this implementation of the no-envelope required ATMs. Depositing checks or cash into an envelope can be a hassle—and a waste of paper. With this new technology, you simply insert your check as is into the slot where it will be photographed and displayed both on screen and on your receipt.

If you’re interested in finding a credit union for you (even if you’re outside of Washington State), check out http://www.findacreditunion.com.