WASHINGTON (10/30/13)--Credit unions again received high profile press coverage this week when Paul Gentile, Credit Union National Association executive vice president of strategic communications and engagement, talked credit union unsecured loan terms in a Reuters piece that focused mainly on banks.
In the story, Gentile noted that credit union unsecured loans average $2,600, with a four-year interest rate of around 10%. The Reuters story, which also ran on Moneynews.com, noted that larger banks such as Citibank and TD Bank offer personal loans at higher rates.
One such example cited in the story is Citibank's personal loan, which offers up to $50,000 at a rate between 6.74% and 19.49%.
A 2013-2014 Fees Report generated by CUNA's Market Research Department details just how much credit union members save when compared to fees and charges levied on bank customers.
For instance, more than 80% of credit unions with checking services still offer free checking, compared to 39% of banks. Only 18% of credit unions overall charge maintenance fees on non-interest bearing checking accounts. Half of those credit unions (9%) levy a general maintenance fee. The other 9% of credit unions charged fees only when a minimum balance fell below a certain threshold.
Another example provided in the CUNA report is median overdraft protection fees, which average $25 at credit unions, compared to median fees of $30 at banks and $35 at larger banks.
As for ATMs: The average nonmember credit union ATM fee, for those that charge them, is $2.10. Banks on average charge non-customer fees of $2.50 per transaction.