Should You Switch to a Credit Union? What Law Partners & Self-Employed Lawyers Need to Know
If you’ve ever felt like your big bank isn’t working in your best interest, you’re not alone. With bank fees, frustrating customer service, and not really paying interest on deposits, more professionals—including millennials and Gen X attorneys, firm owners, and self-employed lawyers—are considering credit unions as an alternative to traditional banks.
But is making the switch a smart move for your finances? Here’s what you need to know.
Credit Unions vs. Big Banks: The Key Differences
A credit union is a member-owned financial institution, meaning you become a part-owner when you bank there. Unlike big banks, which prioritize shareholder profits, credit unions return earnings to members through lower fees, better interest rates, and more personalized service.
Ownership:
Credit Unions: Member-owned, meaning profits go back to members in the form of lower fees and better rates.
Big Banks: Shareholder-owned, focused on maximizing profits for investors.
Interest Rates:
Credit Unions: Typically offer higher savings rates and lower loan rates.
Big Banks: Often have lower savings rates and higher loan rates due to profit-driven pricing.
Fees:
Credit Unions: Generally lower fees on accounts, loans, and transactions.
Big Banks: More likely to charge higher fees and penalties for overdrafts, account maintenance, and wire transfers.
Customer Service:
Credit Unions: Known for personalized service and a community-focused approach.
Big Banks: Tend to have large-scale, impersonal customer service, with long wait times and automated systems.
Technology & Online Banking:
Credit Unions: May have less advanced digital banking tools compared to big banks.
Big Banks: Invest heavily in cutting-edge mobile apps and online banking features.
Accessibility:
Credit Unions: Fewer branches, but often part of shared ATM networks to provide broader access.
Big Banks: Nationwide presence, with thousands of ATMs and physical locations for easy access.
The Pros of Switching to a Credit Union
Lower Fees & Better Loan Rates. Credit unions typically offer lower fees on checking accounts, credit cards, and mortgages, along with better rates on savings and CDs. For law partners with significant cash flow and financing needs, this can save thousands over time.
More Personalized Service. If you’ve ever been frustrated trying to get a real person on the phone at a big bank, a credit union might be a breath of fresh air. Since they’re locally owned and operated, customer service is often more personal and responsive.
NCUA Insurance Protects Your Money Like FDIC Insurance. A common myth is that credit unions aren’t as safe as banks. However, the National Credit Union Administration (NCUA) insures accounts up to $250,000—just like FDIC insurance at traditional banks.
The Cons of Switching to a Credit Union
Fewer Branches & ATMs. Credit unions are often regional, meaning you won’t find branches in every city like you would with a major bank. However, many credit unions are part of shared ATM networks, allowing fee-free withdrawals at partner locations.
Less Advanced Tech & Online Banking. If you rely heavily on mobile apps, some credit unions may lack the cutting-edge digital banking features that major banks offer. While this is improving, it’s something to consider if you frequently manage your finances on the go.
Fewer Perks for Frequent Travelers. Many big banks offer high-end credit card perks, global ATM access, and travel protections. If you travel frequently for work or leisure, you may still want to keep an account at a major bank for these benefits.
Should Law Partners & Self-Employed Lawyers Switch?
If you’re managing significant personal and business finances, you don’t necessarily have to choose one or the other. Here’s a smart approach:
Use a credit union for…
Your primary checking & savings (lower fees, better interest rates).
Auto loans & mortgages (better loan rates).
A local, reliable banking relationship.
Keep a big bank for…
Credit cards with travel perks.
Business banking needs if your firm requires specific services.
Convenient access when traveling.
Final Thoughts: Is It Time to Switch?
Credit unions can be a smart financial move for law partners and self-employed lawyers looking for lower fees, better rates, and a more personal banking experience. However, depending on your needs, keeping a mix of financial institutions may be the best strategy.
If you’re thinking about switching, let’s talk!
