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Why We Love Credit Unions
Nov. 4th, 2011 09:29 amFrom Brian Leubitz at Calitics:
Not-for-profit credit unions are owned by their members. These banks aren't under pressure by Wall Street investors to maximize quarterly returns. Instead, profits go back to the members in the form of higher interest on savings and lower interest on loans, mortgages, and credit card balances.
1. Fewer fees, more savings. The Credit Union National Association estimates that consumers save more than $6 billion a year in better rates and lower fees by using credit unions. That's your money -- who should make a profit off of it, you or your bank? -- ABC News
2. Credit cards with lower interest rates. Federal law prohibits federal credit unions from charging interest rates above 18%. Credit union customers pay, on average, 20% less in credit card interest. -- Forbes
3. Better customer service. 70% of credit union members feel that the institution put the customer's interests ahead of the institution itself. The highest big bank, Wells Fargo, came in at a 40% positive rating. --Forbes
4. No penalties for using or not using your money. Corporate banks routinely charge you to open a checking account, charge you if your account is dormant, charge you if your balance drops below a certain level. It's crazy! Credit unions simply do not engage in these kinds of practices -- practices that are focused on driving up quarterly profits, regardless of customer satisfaction. -- MSN Money
5. Your money stays in your community. Credit unions primarily employ people locally, and give back generously as well. Local credit unions are also more likely to give loans to local businesses, especially women- and minority-owned businesses. Since the recession began, credit unions have vastly expanded their business loan operations, which helps keep funds working in the local community. -- Businessweek (Burnt Orange Report)
Not-for-profit credit unions are owned by their members. These banks aren't under pressure by Wall Street investors to maximize quarterly returns. Instead, profits go back to the members in the form of higher interest on savings and lower interest on loans, mortgages, and credit card balances.
1. Fewer fees, more savings. The Credit Union National Association estimates that consumers save more than $6 billion a year in better rates and lower fees by using credit unions. That's your money -- who should make a profit off of it, you or your bank? -- ABC News
2. Credit cards with lower interest rates. Federal law prohibits federal credit unions from charging interest rates above 18%. Credit union customers pay, on average, 20% less in credit card interest. -- Forbes
3. Better customer service. 70% of credit union members feel that the institution put the customer's interests ahead of the institution itself. The highest big bank, Wells Fargo, came in at a 40% positive rating. --Forbes
4. No penalties for using or not using your money. Corporate banks routinely charge you to open a checking account, charge you if your account is dormant, charge you if your balance drops below a certain level. It's crazy! Credit unions simply do not engage in these kinds of practices -- practices that are focused on driving up quarterly profits, regardless of customer satisfaction. -- MSN Money
5. Your money stays in your community. Credit unions primarily employ people locally, and give back generously as well. Local credit unions are also more likely to give loans to local businesses, especially women- and minority-owned businesses. Since the recession began, credit unions have vastly expanded their business loan operations, which helps keep funds working in the local community. -- Businessweek (Burnt Orange Report)
