LANSING, Mich. (10/20/15)--The lower rates and fees that come with being a Michigan credit union member appear to be powering a steady increase of new members, the Michigan Credit Union League (MCUL) reported.
In fact, the 3% 2015 second-quarter membership surge was the fastest 12-month increase in 27 years, bringing the total number of Michigan credit union members to more than 4.8 million, according to CUNA.
Michigan credit union loans increased by 11.6% in the year ending June 2015--the fastest annual increase in more than 20 years. What’s more, Michigan credit unions offer lower than average rates on new-car, used-car, personal unsecured, first-mortgage fixed-rate, home-equity and credit card loans, according to CUNA.
Mike Schenk, CUNA vice president of economics and statistics, provided analysis of the data (See video below).
Consumers will save $1,019 on the life of a five-year $30,000 new-car loan if they receive the loan from a credit union instead of a bank, according to Informa Research Services Rates data from October.
“Credit unions are not-for-profit, member-owned cooperatives that return profits to their members in the form of higher savings rates and lower interest rates on loans, as opposed to for-profit institutions that return dividends to their shareholders,” said Dave Adams, MCUL president/CEO. “This key difference allows credit unions to put their members’ financial needs before all else. Often, the result is savings that make a real difference for consumers.”
In total, Michigan credit union members saved nearly $287 million in lower loan rates, savings products and lower fees during the past year, according to CUNA. That translates to an annual savings of $61 per member and $117 per family.
The Michigan credit union loans that helped fuel those savings were up across the board, according to second quarter data from CUNA and the National Credit Union Administration.
Among the areas of growth:
Here’s a breakdown of the amount Michigan consumers saved from receiving a credit union loan instead of a bank loan according CUNA data from June 2014 to June 2015: