From NBC News:If you are feeling a little spooked by the news that major banks are in trouble, you might be thinking of different kinds of financial institutions.
Is it a good idea? When it comes to banking, conventional wisdom used to be, the bigger the better. But these are unconventional times.
"We have seen substantial growth," said Kirk Kordeleski of Bethpage Federal Credit Union.
Credit unions are now thriving nationwide. Deposits are up $43-billion this year. That's 6.8 percent.
Bethpage Federal Credit Union is up 11 percent because credit unions are not for profit. They are owned by members not investors. They claim they can charge lower fees and offer lower interest rates.
"Better rates, better value and more trust," said Kordeleski.
"No fees for checking. Never paid a dime for a check," said credit union member Brian McCarthy.
It's not just credit unions seeing more traffic. Community banks are also springing up.
The latest on Long Island is Empire National Bank. Customers seem to like the ability to call the CEO on his cell phone as much as their more cautious lending practices.
"I can say not one of us has ever made a sub prime loan, so there are differences in banks, truthfully," said Douglas Manditch of Empire National Bank.
But professor Andrew Spieler of Hofstra University warns bigger can still be better.
All bank and credit union deposits are federally insured, so they are equally safe, but there are subtle differences.
"Community banks in particular have can only handle a small number of defaults, one or two defaults can throw off all their ratios," said Dr. Spieler.
Professor Speiler says when it comes to credit unions and community banks, you'll get friendlier service, but lower fees and rates?
That's debatable and why consumers more than ever need to shop around.
