EL SEGUNDO, Calif. (4/25/13)--Credit unions have proved again that they are the better value by topping a new savings rate survey with the best rates. A GoBankingRates survey found that local savings account rates are five times higher than the rates of savings accounts from the 10 biggest banks.
"Depositors on the hunt for better savings opportunities may want to leave their big banks for local alternatives," said GoBankingRates in a press release, noting that the difference in rates between big and local was "staggering."
Credit unions' average savings rate was 0.21% annual percentage yield (APY), the survey found. Local community banks' rate averaged at 0.19% APY, while the big banks averaged 0.04%.
Wall Street banks in the study included J.P. Morgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, Morgan Stanley, U.S. Bancorp, Bank of New York Mellon, NSBC North America Holdings and PNC Financial Services Group. Only Goldman Sachs Group broke the 0.1% benchmark in savings rates.
"This suggests that depositors have a good chance of finding competitive saving account rates among local financial institutions--credit unions or banks--over big national banks," said Casey Bond, managing editor of GoBanking Rates.
Overall, local institutions--credit unions and community banks combined--averaged a 0.20% APY. The survey assessed 3,510 local savings account in GoBankingRates' database.
Providing member value is one of the measures of success toward achieving the strategic vision of Americans choosing credit unions as their best financial institutions. Today consumers save about $6 billion by using the better rates and lower fees of credit unions, according to Credit Union National Association statistics. For more information about the strategic vision and how to get there, click on the Unite for Good link.