While credit unions on average provide the highest interest rates for all deposit account types, banks boast the highest individual interest rates available today, according to GoBankingRates.
Thanks for publishing this. I think it shows on average, Credit Unions are returning some of the advantage from the tax advantage to members through higher average rates.
How misleading. The 4% rate offered by Bank of Greene County is only good good on the first $1,000 then it drops to 0.25%. Too discouraged to check the rest of these "great rates".
I think some of you are missing the point - which is a credit union is not automatically a better deal for consumers. It depends on the credit union, just as it depends on the bank, as as was pointed out - their need for cash among other things. NCUA and the trades brag that CU rates are better on average, but since no consumer gets the industry average rate, but instead the rate(s) offered at their own CU or bank, none of that really matters. This is why our CU doesn't use the CUNA math to say our members save $xx per year by using our CU. We don't offer just average rates - and we're proud of that fact. We don't try to mislead our members or potential members, and we're proud of that too. But we're not so proud of the misguided efforts of CUNA and NCUA to "help" us with their rate information - that's bound to backfire eventually. Industry average rates DON'T matter to consumers, just to demagogues.
Thanks for publishing this. I think it shows on average, Credit Unions are returning some of the advantage from the tax advantage to members through higher average rates.
ReplyDeleteBut it also shows that you are not necessarily better off using a credit union. It pays to shop around.
ReplyDeleteVery True. There are both well run and poorly run banks and credit unions that deliver varying levels of value to consumers/members.
DeleteHow misleading. The 4% rate offered by Bank of Greene County is only good good on the first $1,000 then it drops to 0.25%. Too discouraged to check the rest of these "great rates".
ReplyDeleteAlso depends upon the need of the bank or credit union for money. If loan demand warrants attracting cash, then bank/credit union will pay for $$.
ReplyDeleteI think some of you are missing the point - which is a credit union is not automatically a better deal for consumers. It depends on the credit union, just as it depends on the bank, as as was pointed out - their need for cash among other things. NCUA and the trades brag that CU rates are better on average, but since no consumer gets the industry average rate, but instead the rate(s) offered at their own CU or bank, none of that really matters. This is why our CU doesn't use the CUNA math to say our members save $xx per year by using our CU. We don't offer just average rates - and we're proud of that fact. We don't try to mislead our members or potential members, and we're proud of that too. But we're not so proud of the misguided efforts of CUNA and NCUA to "help" us with their rate information - that's bound to backfire eventually. Industry average rates DON'T matter to consumers, just to demagogues.
ReplyDeleteAmen
ReplyDelete