Credit unions in Georgia continue to outpace banks with lower interest rates on loans and credit cards and fewer fees.
According to the Georgia Credit Union Affiliates' latest index of loan activity and rate comparisons, credit unions saved Georgians more than $138 million on an annual basis from lower interest rates, higher rates on savings and lower fees.
Credit unions approved more than 174,000 loans to Georgians through the first half of this year, compared to 178,000 in the same period ending June 2008. Loans totaled more than $2.1 billion in the first half of 2009, compared to $2.0 billion through the same period last year. While the number of loans decreased slightly, the average loan amount was higher-$12,416 compared to $11,557.
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Lower average interest rates on loans issued by Georgia credit unions through the first half of this year saved members a total of $70.4 million compared to bank rates. The majority of loans continued to be for consumer purchases, including new and used vehicle loans, home mortgages, home equity lines of credit and credit cards.
Higher interest rates on savings products yielded $35.5 million to credit union members' accounts compared to banking institutions. Fewer and lower fees for credit union members totaled $32.8 million in savings benefits compared to banking institutions.
Credit union rates on auto loans continued to be lower than banking institutions. The average rate for a 60-month new car loan was 5.54% for credit unions in Georgia, compared to 7.14% for banking institutions. The average rate for a 48-month used car loan was 5.71% for credit unions, compared to 7.74% for banking institutions.
The average rate for credit cards was 11.77% for credit unions in Georgia, compared to 12.07% for banks. At 11.33%, banks offered slightly lower rates on personal or unsecured loans, compared to 11.54% for credit unions. Credit unions in Georgia offered slightly higher average rates for 15- and 30-year mortgages, at 5.71 and 6.21%, respectively, compared to 5.36 and 5.85% for banks. The average rate for home equity lines of credit and second mortgages was 4.83% for credit unions in Georgia, compared to 5.31% for banking institutions.
The average rate paid on a savings account with a $1,000 balance was 0.64% for credit unions, compared to 0.47% for banking institutions. The average rate paid on a share draft checking account with a $5,000 balance was 0.47% at a credit union, compared to 0.40% for banking institutions. The average rate paid on money market accounts was 1.95% for credit unions, compared to 1.32% for banking institutions. The average rate paid on an individual retirement accounts was 2.24% for credit unions, compared to 1.76% for banking institutions.
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