December 27, 2007 One of the nation's top financial magazines, MONEY, recently published an article that called credit unions "the best deal in banking." This article's conclusions ring true for the 600,000 Maine credit union members who saved a total of $40 million last year just by using a credit union. MONEY highlights five reasons to use a credit union in the story.
The article also noted that a higher percentage of credit union members liked their institutions than did bank customers. The author, Carolyn Bigda, wrote, "Credit unions offer sweet deals on credit cards, low rates on auto loans, the best CD rates in the business, and heaps of personalized services. Andy yes, you too can join one."
Below are five reasons that Bigda listed as reasons why consumers should use a credit union:
- Savings - On average, consumers earned nearly 2% more on their CDs, and credit unions compete well with major online banks in rates on traditional savings accounts.
- Credit Cards - Not only do credit unions have lower interest rates for credit cards but do not practice "universal default," a policy in which a lender raises a consumer's interest rate if you default on another lender's loan.
- Auto Loans - Credit union auto loans, on average, carry rates one to two percentage points lower than those of similar-size banks.
- Home Loans - At credit unions, you will find an interest rate that as good as banks, plus borrowers save significantly at a credit union because of fewer and lower fees.
- Perks - These include free personal finance classes, programs focused on younger members and offer complimentary retirement and credit counseling programs.
John Murphy, President of the Maine Credit Union League, applauded the article for "recognizing the value that credit unions offer their members, both financially and personally. The credibility of a magazine, such as MONEY, also adds considerable weight to the findings and conclusions in the article that encourage readers to seriously consider using a credit union for all of their financial services."
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