8-Jan-14
Customer frustration with bank fees may want to consider their options , including switching their money transferred to the credit union . According to the Credit Union National Association , more than 960,000 Americans use credit unions generally offer higher savings rates and lower fees than traditional banks.
Credit unions, it is different from the bank , owned and governed by its members , is often misunderstood as exclusive financial institutions with limited services . They are still subject to conceal the scale of banks, bank holding $ 14.45 trillion in assets and credit unions , " $ 1.03 trillion , CUNA report Credit Union ( $ 149 million in assets ) is also far higher than the average size of banks ( 220 ten billion in assets ) is small, but as of 2012 credit unions offer a range of services - including free use of ATM , e-banking , loans and interest-bearing savings accounts - and most Americans are eligible to join their ranks.
Here is the answer five common questions about credit unions :
Am I eligible to join the credit union ?
The members belong to a credit union depends on the particular community , such as the workplace , region, or the church , most consumers are eligible , even though many people do not know it. They may just need to investigate options for their community.
So how do you find one ? Sites such as mycreditunion.gov can help. In addition, ask around - your employer , spouse's employer or local government can guide you as well.
Do credit unions offer better rates ?
On average , loans credit unions offer savings accounts and high interest rates low - just what consumers want . National Credit Union Administration reported that the five-year loan to buy a new car in the bank 's average interest rate of 5.19% , compared with 2.87% of credit unions . The savings rate of the two credit unions and banks are similarly low , at 0.14 and 0.13 , respectively, in June 2013 , although credit unions typically offer higher rates of return. March 2008 , for example, the average return on a regular savings account interest rate of 0.83 percent , to credit unions , compared with 0.55 percent of the bank.
CUNA calculations, total , higher yields , low interest rates and lower fees add up to about 580 billion in total provide benefits to members , or about 118 yuan a family member in 2012.
Deposits are insured in the same way , they are the bank ?
Yes. Deposits of up to $ 250,000 of insurance coverage - by the Federal Credit Union National Credit Union Administration , which provides FDIC bank applies the same protection to the insured. NCUA website allows credit union members to verify their insurance coverage ; The agency also recommended that the user signs in prominent credit unions, said it was checking NCUA insurance.
Do credit unions continue to collapse ?
Like banks, credit unions can be folded , but this usually means that they merged with another credit union . No matter what happens , the members by NCUA insurance. NCUA said that if a federally insured credit union fails, members usually receive deposit payment within three days .
CUNA also reported that from 2008 to 2012 downturn began , almost four times as many banks have failed , because credit unions ( 465 and 124 ) . 2012 , 51 banks failed , compared 21 credit unions .
What about financial literacy - credit unions can teach me how to do smart investment decisions ?
Credit proud to be a major source of financial information. Many offer seminars and topics such as preventing identity theft and manage credit card information. For more information on these topics can be found at NCUA website or contact your local credit union .
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