I'm turning 18 soon, is it better for me to open a bank account or get a credit union account?

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IcedAce21

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I used to have a bank account (bank of Am.) but I moved, and I hated how they charged me and over drafted me for nothing!! >.< But, I really need a savings account- that will gain interest, and quick. My sister in law was telling me about her savings was in a local credit union- and how it builds up on credit faster??what IS the difference between a credit union and a bank??I'm turning 18 soon in a couple of months,YES, I have money saved for my College classes next year- but I want to save money and invest in it, so if there is ever a reason that I should need it- I can get to it. ANd again, I want it to be invested- and gain interest FAST soo....Which one? Bank account? Credit Union?
 
I would go for the bank beacause most of them will have special a/c for uni students.
 
Credit Union because they always have competitive rates or big corporate banks are FDIC insured meaning your funds are insured by the government when the bank goes bankrupt, but they have horrible saving rates. You want to gain interest quick? Open several CDs for 6mos-1yr. Do the ladder system, so you will have funds every six months to a year for college. Also, you might want to open a SMALL credit card account to start your credit.
 
For you, just get a free checking account, with and attached savings account at WAMU--or Chase as they like to be called now. No bank or credit union is offering any thing as far as interest is concerned right now. For your information, you compare the interest that they pay, it doesn't matter bank or credit union. The rate paid right now is quoted for a years time. 1% is like 1.000 divided by 12 months. Not pretty. And 2% is not much better. But the "free" checking, and the free checks, and so forth, are worth something. But if you bounce check, it doesn't matter where, you will pay. So be careful and smart.
 
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