Newsroom
CUs beat banks on platinum card rates
Credit unions were found to offer the lowest rates on rewards-based and platinum credit cards in a recent analysis by SNL Financial, which reported the credit union card rates at nearly 200 basis points below rates at banks and thrifts as of March 31.
SNL Financial says the average rate charged on such cards nationally is about 10 percent to 11 percent. Its analysis, based on information filed with regulators, showed credit unions charging nearly 200 basis points less than banks and thrifts.
SNL says it based its analysis on data from selected institutions. Within that group, it said, most of the credit unions offering the lowest average credit card rates are smaller: One-third of the 16 they chose to highlight having $100 million to $200 million in assets; just four had more than $1 billion in assets.
Of the 16 credit unions highlighted in the report, Advantage FCU of Rochester, N.Y., charged the lowest – an average 5.25 percent – on reward cards. The lowest average platinum card rate in the group, 3.25 percent, was offered by Educational Systems FCU of Greenbelt, Md. At the banks reviewed, the lowest average reward card and platinum card rates reported were 7.24 percent and 5.15 percent.
The SNL findings agree generally with an analysis published jointly by NAFCU and DataTrac Corp.
As of July 31, the data show the lowest platinum card rate charged nationally by credit unions was 3.99 percent; at banks, it was 5.15 percent. The DataTrac data show also that credit unions were charging an average 9.22 percent on platinum cards as of July 31; banks were charging 10.5 percent. The high rates charged by credit unions and banks were 17.99 percent and 26 percent, respectively.
More of the NAFCU/DataTrac comparisons are online.
Share This
Related Resources
Add to Calendar 2024-06-26 14:00:00 2024-06-26 14:00:00 Gallagher Executive Compensation and Benefits Survey About the Webinar The webinar will share trends in executive pay increases, annual bonuses, and nonqualified benefit plans. Learn how to use the data charts as well as make this data actionable in order to improve your retention strategy. You’ll hear directly from the survey project manager on how to maximize the data points to gain a competitive edge in the market. Key findings on: Total compensation by asset size Nonqualified benefit plans Bonus targets and metrics Prerequisites Demographics Board expenses Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Gallagher Executive Compensation and Benefits Survey
preferred partner
Gallagher
Webinar
AI in Action: Redefining Disaster Preparedness and Financial Security
Strategy
preferred partner
Allied Solutions
Blog Post
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 2024 Mid-Year Fraud Review Listen On: Key Takeaways: [01:16] Check fraud continues to be rampant across the country. Card fraud is affecting everyone. [04:31] Counterfeit US passport cards are just another new toolbox in the bad actors’ toolbox. [07:21] Blocking the fallback is the only way to defeat counterfeit cards. [11:17] The best way is constant education to your members in as many channels as you can. [13:02] We are still seeing overdraft lawsuits. Make sure the programming you have at your credit union matches what you have displayed for the members. Web NAFCU digital@nafcu.org America/New_York public
2024 Mid-Year Fraud Review
Strategy & Growth, Consumer Lending
preferred partner
Allied Solutions
Podcast
Get daily updates.
Subscribe to NAFCU today.