University Credit Unions Vs. Banks – Which Are Better for Students?

Key Findings

• Free checking: Free student checking is alive and well, with a median monthly fee of $0 for both banks and credit unions. The few financial institutions that did charge monthly fees had simple waive requirements, such as signing up for electronic statements or maintaining a minimum balance of $250.
• Out-of-network ATM transactions: Credit unions charged less for out-of-network ATM transactions, and many offered a set number of free out-of-network ATM transactions per month. 57% of credit unions surveyed gave customers at least 1 free out-of-network ATM transaction per month, while only 18% banks gave customers this perk.
• Accessibility: Credit unions tend to be more accessible than banks—university credit unions had branches on campus more often than banks did, and university credit unions offered more surcharge-free ATMs near campus than banks did. Banks that had more on-campus ATMs than credit unions often participated in affinity agreements with the universities.
• Perks: Student perks were abundant, including free sweatshirts, courtesy overdraft refunds and gift card rewards for good grades. We listed some of the best perks we found.