LOS ANGELES (6/28/13, UPDATED 2:30 p.m. CT)--A just-released savings rate study comparing credit unions and community banks rates has found that "it is credit unions that do, in fact, come out on top," according to GoBankingRates.com (June 28).
Credit unions offer an average 0.20% annual percentage yield (APY) savings account rate, while local banks provide a slightly lower 0.18% APY, said GoBankingRates.com. Its data averaged rates from 5,000 community banks and credit unions.
In the top 10 credit unions with the highest rates, two credit unions--Pioneer Muslim FCU, Sugar Land, Texas, and Rutherford Postal District Employees FCU, Lakewood, N.J.--tied for the highest savings rate of 2.52%. In the banks' Top 10 list, the two top banks--Atlas Bank and Bank of Bolivar--offered 1.01% rates.
All of the top 10 credit unions had rates of 1.25% and above, as of May 31. The banks' top 10 list rates ranged from 0.85% to 1.01%.
A similar study in April found that the average savings rate at credit unions was 0.21% APY, while banks' rates averaged 0.19% APY. Big banks in that study averaged 0.04% (News Now April 25).
The study based the rates on online published rate sheets belonging to the financial institutions for a $10,000 opening deposit. For more information, use the link.