RICHMOND, Va. (8/13/10)--Credit unions historically have offered better rates and terms on financial products than banks, and consumers should include them in their search for the best deals, according to a Richmond, Va., newspaper. The article features CUNA President/CEO Bill Cheney, who explains how the credit union difference translates into savings for consumers. Informa Research Services Inc., a California-based market research company that tracks 3,500 financial institutions nationwide, including 500 credit unions, provided the Richmond Times-Dispatch
(Aug. 8) with a comparison of credit union and bank rates and fees as of July 27: According to the newspaper, the comparison indicates that on average:
* A $2,500 checking account has a 0.34% annual percentage yield (APY) at credit unions, compared with a lower 0.25% at banks: * A $1,000 regular savings account has a 0.31% average APY at credit unions, compared with 0.26% at banks; * A one-year $10,000 certificate of deposit has a higher 0.96% average APY at credit unions, compared with 0.82% at banks; * A five-year new-auto loan has a 4.64% average rate at credit unions, compared with 5.98% at banks; and * Overdraft fees on checking have a $25.29 on average at credit unions, compared with $29.35 at banks.
“Credit unions generally have more competitive rates on loans and more generous rates on deposits,” Greg McBride, senior financial analyst at Bankrate.com., told the paper “Since we don't have shareholders, we don’t have to pay dividends,” Bill Cheney, president/CEO of Credit Union National Association, told the paper. That translates to savings for members, the paper added. “There’s not a one-size-fits-all answer for everyone,” McBride concluded. “However, credit unions do warrant being included in your search, whether you're looking to move your entire banking relationship or just looking for the most competitive loan rate.”