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Conflicted with CU

Valued Contributor

Conflicted with CU

Hi,

So I've had a card with a local CU with a 7k CL for a little over a year now. It usually carried a balance and required me to have a $5 savings account.

I paid it in full in February and I guess in April they changed their policy and are charging me $5 a month for the savings account which is required to have the credit card.

They said if I charge $1,000 to my CC or deposit 1k they will waive the fee. This seems really ridiculous to me. This card is my highest CL so I don't want to close it.

I'm considering doing a SS loan just to satisfy the 1k loan requirement and not get hit every month with a $5 fee.

What do you guys think? I think they'll HP me for it too which is why I'm hesitant. Help
Message 1 of 32
31 REPLIES
Regular Contributor

Re: Conflicted with CU

1000 is a little high to waive fees. I would read the fine print, it maybe the type of savings account you have. I usually see $100 minimum balance, or automatic transfer to savings once a month or a checking/savings combo to avoid a monthly fee.

FICO 8 Scores 02/21/2017 EQ 593, TU 584 EX 602 -- 06/21/2017 - EQ 632, TU 652, EX 656
Message 2 of 32
Valued Contributor

Re: Conflicted with CU

I checked and called them they said they recently changed it from $500 to $1,000. It makes no sense though just for a basic savings account THAT THEY REQUIRE YOU TO HAVE TO GET A CREDIT CARD

"Low Balance Fee (monthly) ......................................................................................................................................................................... $ 5.00◄ This fee is charged if the combined total of all savings, money market, checking, certificate and loan balances within the same account structure is less than $1,000 on the last day of the month. This fee is waived for the first three (3) months your account is open, after which the fee is waived for members who are age 24 and under, members who have a brokerage relationship with Logix Financial Services, and members that qualify for the Silver, Gold, or Platinum level of Relationship Rewards for the statement period. The fee is charged to the Main Savings Account, provided sufficient funds are available; otherwise, the fee will be charged to your checking, money market, or extra savings account. This clause replaces and supersedes the “Main Savings Account – Monthly Low Balance Fee” section in the Membership and Accounts Agreement and Disclosure."

Silver status is 10k with them.

It makes no sense at all even major banks that want to make profit off you chase $100-$300 minimums for savings, this is a credit union they're supposed to help members.

Any advice?

Message 3 of 32
Valued Contributor

Re: Conflicted with CU

I had a similar issue with a different CU that decided they wanted a min of $250 in the share account or it's $2.50/mo for the low balance.

 

If I had to put down $1K to avoid $5/mo I would just get a different card.  I earn 2.5% APY on my current CU Checking account so..... .01%-.1% isn't going to work for a $1K deposit.

Message 4 of 32
Valued Contributor

Re: Conflicted with CU

My advice OP is to ditch that CU and run. Check out Penfed or Navy Fed you can become eligible for both. 

Message 5 of 32
Valued Contributor

Re: Conflicted with CU

So trying to get a Savings Secured Loan isn't worth it to keep the credit card alive? Smiley Sad
Message 6 of 32
Valued Contributor

Re: Conflicted with CU


Matt4200 wrote:
So trying to get a Savings Secured Loan isn't worth it to keep the credit card alive? Smiley Sad

Nope

Message 7 of 32
New Contributor

Re: Conflicted with CU

All credit unions require you to have a share savings account; it's your share of the credit union. None of my CUs require a minimum for the savings. For a checking account, there are miniums to avoid fees. It isn't right since you already paid to join the credit union, and they're supposed to be doing things in the best interest of the members. Since it's your oldest account, I would think about the benefits of keeping the card. Like how often you use the card, the benefits of the card (utilization, rewards), and if you have cards that already serve the same purpose.

 

For the $1000 secure savings loan, it would depend on what you want. If you want a installment loan, then go ahead and deposit the money and get the loan. If you're only doing it to keep the account, think long and hard about the decision. Most CUs don't have a high APY. You could get a better return on that $1000 by opening a bank account and getting a bonus or getting a high yield savings account from a CU.

Message 8 of 32
Established Contributor

Re: Conflicted with CU

Which credit union is it? I agree it seems odd that they'd be charging you for having a basic (share savings) account with them. Do you have any significant amount deposited with them in shares, or was it just basically the minimum and your credit card?

Ch 7 BK discharged 12/14, well along in rebuilding credit. FICO 11/2/17:TU 660/EX 694/EQ 688 FICO 8 (Aug 2017) or 680 FICO 9 (Penfed Sep 2017), VS 3.0 11/7/17: TU 704/EX 690/EQ 697. $32.3K revolving credit as of 11/7/17; $951 Cap One secured Platinum MC, $2000 Apple FCU Platinum Visa,$3500 Amazon Prime Store Card, $3500 Walmart Store Card, $3500 Cap One Quicksilver MC, $3600 Discover It, $4000 Care Credit, $4300 Overstock Store Card, $7000 Penfed Power Cash Rewards Visa, $10k PenFed used car loan, $5k Navient student loan. In the garden again from 10/26/17 for at least the next 3 months unless I get a really really good preapproval.
Message 9 of 32
Valued Contributor

Re: Conflicted with CU

Joe - It's Logix Federally Credit Union

It makes no sense at all to have a required minimum balance for a Savings or credit card. I understand a checking account because you can use it heavily with a debit card, checks etc.

It's basically just the minimum and credit card.

The $1,000 even at 1% which is rare that's $10 per year.

Also you do know that a share Secured loan really requires no money tied up...if you hand them $1,000 to open it they will open it and return your $1,000. Smiley Wink

I just don't want to lose that available credit because it lowers my overall UT.

Maybe it's an error in their system? But I emailed them and they claim it's legit Smiley Sad it makes no sense to charge a low balance fee for a share savings, one they require you to get to get a credit card with them.
Message 10 of 32