Consumer Reports, USA TODAY Tout CUs, CUNA Survey
MADISON, Wis. (9/27/13)--The trend of switching to credit unions, the Credit Union National Association's Women's Financial Survey, and credit unions besting banks on certificates of deposit rates and minimum deposits are topics picked up recently by three prominent national media: Consumer Reports
, USA TODAY
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The September issue of Consumer Reports
, in its article "Dump your big bank and save," reported that many consumers were reluctant to switch from their banks because they were entrenched with the banks' online and mobile-banking services during the original Bank Transfer Day two years ago. However, credit unions have "caught up" in mobile banking, with many having added or working to add smart-phone banking, and "now may be the time for you to stage your own Bank Transfer Day," the publication said.
It listed credit unions as the first of four alternative financial institutions that consumers fed up with big banks could turn to. Credit unions "offer all of the services of a bank (and federal deposit insurance) but tend to charge considerably less for checking accounts and loans. And they generally pay higher interest rates on savings," said Consumer Reports
. It also noted credit unions scored 82 on the American Consumer Satisfaction Index--outscoring Chase (74), Citibank (70) and Bank of America (66).
USA TODAY Money
earlier this month tweeted about CUNA's Women's Financial Survey, which scored a major media hit when the national publication featured the survey in its "USA Snapshot" on the front page of its Money section.
The tweet, pictured here, repeated the graphic used in the Sept. 9 edition, with the statement "52% of women surveyed say they have enough savings to cover six months' worth of expenses. Do you? pic.twitter.com/C7TN72UyCd."
In the article, "Credit Unions 'Destroy' Banks with Higher CD Rates, Lower Deposit Requirements," GoBankingRates.com
(Sept. 25) said it "surveyed current CD rates to determine where high-yield opportunities exist, finding credit unions outperform for-profit banks.
"The fact is credit unions destroy banks with higher rates and lower deposit requirements," said Casey Bond, the publication's managing editor, in the article. "There are definitely better deals on the local level in general, but right now, even community banks can't keep up with the savings credit unions are providing members."
The publication reported what it found in average minimum deposits required and average rates (annual percentage yield) for CDs with three different maturity terms. They were:
- Six-month CD: $2,435 (0.28%) at credit unions and $3,678 (0.17%) at banks;
- Twelve-month CD: $2,401 (0.42%) at credit unions and $3,572 (o.27%) at banks; and
- Twenty-four month CD: $2,499 (0.62%) at credit unions and $3,592 (0.43%) at banks.
Use the links to access each article.