Knowing The CU Difference
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Credit unions are member-owned, not-for-profit financial cooperatives. Banks
are owned by stockholders.
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Credit unions exist to serve their owners - members!
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Banks exist to serve their owners -- stockholders
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Credit union "profits" are paid back to members as higher dividends
on deposits, lower interest rates on loans, and in low-cost services. Bank
profits are paid out as dividends to stockholders who expect a return on their
investment.
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Credit union profits are returned to members!
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Bank profits are returned to stockholders
America's credit unions are here to help you reach your financial goals. Credit
union service and advice has only your interest at heart -- after all, you own
the credit union!
CNN tells why CUs are better
WASHINGTON (12/30/09)--CNN Tuesday explained some of the reasons why consumers
feel as though they're "getting a better shake" by choosing credit unions over
banks.
"Had it with your bank this year? It's time to start fresh," said CNN, in a
recent story, "Credit Unions Duke it Out With Banks." CNN carried both a print
and video version of the story.
Gerri Willis, CNN personal finance editor and host of "Your Bottom Line," a
show dedicated to saving money, noted that fees are lower at credit unions and
rates are more attractive. Savings rates at credit unions are 0.41%, compared
with 0.29% at banks.
A one-year share certificate at credit unions yields 1.45% in interest, while a
certificate of deposit at a bank yields about 1.15%.
Credit union credit cards are also a bargain, she said.
"You might as well go with people who are willing to pay you," Willis added.
She noted a Pew Charitable Trusts study that indicated that interest rates on
credit cards from credit unions are 20% lower than those at banks. Credit
unions' penalty annual percentage rate is 18% on average compared with 29% at
banks.
"People feel like they're getting a better shake at credit unions, because
credit unions serve their members," Willis said.
She suggested viewers visit the Credit Union National Association's CU Locator
to find a credit union.
CBS Early Show, other media give boost to CUs
NEW YORK (12/18/09)--Is it time for consumers to dump their banks? That's a
question the CBS Early Show posed to consumers in a highly positive Thursday
story about credit unions.
The story, "Credit Unions Better than Banks For You?" compared credit unions
with banks, touting credit unions' benefits--including low rates, member
service and the fact that credit unions are still lending, even though many
banks have pulled back.
"[Consumers are] tired of all the big fees being imposed by the big banks,
they're tired of the really bad customer service...so they're making the switch
from the banks to the credit unions. Membership was up 11% in the third
quarter," said "Early Show" financial contributor Vera Gibbons.
"If you look at the bank loan portfolios, they're actually shrinking, whereas
the credit union loan portfolios are growing," she added. "What that means--is
if you're a creditworthy customer you stand a better chance of getting a loan
at a credit union than at a big commercial bank."
She also noted that credit unions offer higher rates on deposits and lower
rates on loans, especially auto loans.
"The overall satisfaction rate is very high at credit unions," Gibbons said.
Another story by CBS Moneywatch Thursday said to "consider a credit union" as
one of the "nine best strategies for borrowing in 2010." The story cited a 2009
Pew Charitable Trusts Study, which said credit union credit card interest rates
are about 20% lower than banks. The Pew study has received significant
attention from other media including The New York Times and The Wall Street
Journal.
On Thursday, CNBC noted that consumers should check out credit unions when
seeking auto loans. The story quoted Jim Hanson, Credit Union National
Association vice president of personal finance. Hanson told CNBC that credit
unions' rates tend to be 1% to 1.5% lower than banks'.