X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON-In her family finances column, The Wall Street Journal Reporter Kelly Spors suggested that consumers should look closer at the services credit unions are offering. “These once-sleepy not-for-profit outfits are moving aggressively to compete – and offering noticeably better interest rates on loans and deposits than you’ll find at many local banks,” the column, Credit Unions Offer More, read. Spors cited May 20 data from Bankrate.com, which showed that while banks had a slight edge on 30-year fixed and one-year adjustable rate mortgages (a 0.03% and 0.02% difference, respectively), credit unions beat out the banks in 15-year mortgages, new and used auto loans, and variable rate credit cards by margins reaching over 2%. Credit unions also trounced the banks’ rates on money market and checking accounts, and one- and five-year CDs (See chart). The column suggested consumers check their eligibility for credit union membership at CUNA’s credit union locator at www.creditunion.coop/cu_locator or NCUA’s locator at www.ncua.gov/indexdata.html. Consumers should also be aware of the drawbacks of credit unions, Spors cautioned, like the fact that some credit unions do not offer all the services banks do. She noted a 2003 CUNA study which found that 53% of credit unions offer credit cards, 57% offer ATM access, 17% offer stock/bond brokerage services, and 60% provide Individual Retirement Accounts. CUNA President and CEO Dan Mica was quoted in the column, explaining, “`Bank presidents have to make sure they’re doing everything they can to maximize shareholder profits.’ But with credit unions, he says, `any money that the credit unions isn’t using ultimately goes back to the customers.’” The column also quotes a spokesperson from the American Bankers Association pointing out that credit unions do not pay taxes.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.