Aug. 23, 2011 – Consumers are “squeezed less” at credit unions, says the headline to an article posted Monday on TheStreet.com detailing the differences in consumer loan interest rates and fees charged at credit unions and banks.
“While credit unions have not been immune from a falling interest rate climate, their members are getting much better rates than bank customers are,” according to the article, which notes a decline in the average rate on bank certificates of deposit (4 percent to 0.47 percent) over the past 4 1/2 years. “While the subset of banks are in line with that national average, the same product at a credit union offers a 0.73% return – nothing mind-blowing, but still more than 55% higher than the national average for banks,” it notes. “Indeed, credit unions beat banks on deposit rates across the board.”
The article gives banks the advantage on mortgage rates overall, but credit unions reportedly did better on other types of loans, according to the firm’s proprietary index.
For daily updates of credit union and bank loan and savings rates, visit www.culookup.com/CompareCURates.