I urge everybody I know to transfer their banking to a credit union if at all possible. Think about it - a social responsible,non-profit bank! How much better does it get than that? (I'm not going to enter into the 'is surplus a profit?' question - you all know what I mean)

There's a lot of satisfaction in knowing not only exactly how your financial institution is being handled but that you can change it if you're unhappy with it.

Detractions? Well, as hard as I find it to admit, there are some. There are still service charges to deal with, though they are certainly not out of line from other institutions. And fewer branches and ATMs to use means it's a little less conveniant than a bank. But for most of us, social responsibility is probably worth a little inconvenience anyway - and realistically, how often do you actually visit the branch? It's not so bad as all that.

In response to the original question, things to think about: (1) transaction costs including ATM fees, (2) interest rates earned on deposits and charged on loans/credit cards, (3) availability of ATM's, or the ability to use other institutions machines, if and when you need them, and finally, (4) are your deposits FDIC insured and to what level [if not, what is the financial strength of the entity you are dealing with]?