January 7, 2009 During these difficult economic times, 600,000 Mainers have some good news, thanks to Maine's credit unions. A recent study found that the economic benefit of using a Maine credit union is nearly $73 million. The ability of credit unions to offer Maine consumers higher interest payments on deposits, lower interest rates on loans, and fewer and lower fees on financial services is what keeps these savings on the rise. In the study, "An Examination of the Economic Impact on the Maine Economy and the Financial Benefits to Maine Consumers of the State's Credit Union," Charles Lawton, a well-respected economist at Planning Decisions in South Portland, concluded that credit unions have significantly lower, fewer or no fees compared to for-profit financial institutions. Credit unions also pay, on average, higher dividend and interest rates on savings and charge lower interest rates on loans. Lawton explained, "Maine credit unions provide a significant financial benefit to not only the 600,000 members who use a credit union but for all consumers. It's quite hard to imagine what the rates and fees of other financial institutions would be if there were no credit unions or credit unions in Maine were not as strong as they are. Consumers are well-served by Maine's credit unions."
In 2007, the financial benefits of using a credit union to Maine consumers was approximately $73 million. That includes $16 million in the form of higher interest rates on savings accounts; $23 million in the form of lower interest rates on loans; and $34 million in the form of lower and fewer fees for financial services. The study found that the direct benefit that Maine's credit unions provide nearly doubled from the findings of a similar study that was done in 2005 which found the benefit at nearly $40 million.
Maine Credit Union League President John Murphy said that the great efforts made to offer such savings in a challenging economy make credit unions an increasingly valuable resource for Maine people. "The credit union philosophy of putting the interests of their members first continues to highlight the difference between credit unions and other financial institutions. Credit unions are owned and governed by their members, so all members benefit from better rates and lower and fewer fees. That is a key and distinct difference of credit unions. Now more than ever, Maine consumers recognize and appreciate the value of using a credit union," he said.
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