CUs keep account minimums lower than banks

MADISON, Wis. (11/1/06)--With lower minimum deposits on interest- and non-interest-bearing accounts, credit unions make it easier for consumers to open such accounts.

The average minimum deposit to open a non-interest-bearing account is $58, with the most common amount being $25 among credit unions surveyed, according to the 2006-2007 Credit Union Fees Survey from the Credit Union National Association (CUNA).

Banks and thrifts require more. In the fall checking survey from Bankrate.com, banks and thrifts said they required an average minimum of $87.67--a record high and a 21% increase from last spring's average of $72.43.

The minimum-balance requirement to avoid fees on interest-bearing accounts is significantly higher at banks than at credit unions.

According to Bankrate.com, minimum balances for such accounts rose to a record $2,660. If the minimum isn't met, the average monthly service fee is $10.74.

To avoid monthly maintenance fees at credit unions, the average balance is $790. Eighty percent of credit unions do not charge these fees, but those that do say they charge an average $5.70 per month.

Banks also increased the average minimum deposit for an interest-bearing account--$615.41, a 43% increase from the spring Bankrate survey.

Credit unions' average minimum deposit to open an interest-bearing account is $462, with the most common amounts being $25, $99 and $100.

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Resource Links
CUNA 2006-2007 CU Fees Survey
Statement stuffer: Keep the Difference: CU Fees vs. Bank Fees
RELATED STORIES: CUs Make a Difference


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