Friday, June 7, 2013

Study: Community Banks Marginally Outperform CUs on CD Rates

This may shock consumer reporters; but a study by GoBankingRates.com found that community banks are competitive with credit unions with respect to their rate offerings on CDs.

The study found that interest rates offered by community banks on CDs were marginally better than on comparable CD interest rates offered by credit unions.

The study looked at the interest rate being offered on a $10,000 CD with six-month, one-year and two-year maturities and found that community banks paid slightly higher rates on CDs with six-month and two-year maturities, while credit unions offered a slightly higher rate on the one-year CD.

So, this study supports the findings of an earlier study by the Tax Foundation that concluded that, on average, the credit union tax subsidy was not being passed through to savers.

Read the study.







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