NEW YORK (1/13/10)--It’s time to say goodbye to banks and join a credit union, according to CBS Moneywatch.com
, which touted credit union’s lower fees, better rates and the Credit Union National Association’s (CUNA) credit union locator. Also this week on CNN
, financial guru Suze Orman encouraged consumers to obtain credit cards from credit unions. Steve Brobeck, executive director of the Consumer Federation of America, told CBS
that “credit unions charge lower fees and loan rates than banks and pay higher savings yields.” The article said credit unions pay 0.3% more on share certificates than banks do on certificates of deposit. CBS
noted CUNA’s Ratedex site, and compared credit card and savings rates at credit unions and banks. Credit unions can often return more on savings and charge less on loans because “the credit union channels any excess funds back to its members,” Mark Wolff, CUNA senior vice president of public relations, told CBS
, which links consumers looking for a credit union to the locator tool on CUNA's www.creditunion.coop site. Dupaco Community CU, Dubuque, Iowa; Boeing Employees CU, Seattle; Digital FCU, Marlborough, Md.; and other credit unions also received favorable mentions in the article. The MoneyWatch story opens by recounting the story of Dupaco members Steve and Angela Olson, a police officer and high school teacher, who quickly and successfully refinanced their home equity line through the CU and saved more than $300 a month after having no luck at area banks. "I wish we checked into a credit union a while ago," Steve Olson said.
In other news, Orman told CNN
’s Campbell Brown that she is upset because banks continue to reap profits while charging consumers high fees and interest rates. Orman advised consumers to find a good credit union credit card. “Federally chartered credit unions can’t charge you more than 18% [in interest],” Orman said. “Credit unions care about their members; banks care about their shareholders. Credit unions are going to take better care of you.”