ALEXANDRIA, Va. (2/10/15)--The Motley Fool said 2015 is the year for consumers to make the switch to a credit union in a recently published article on the personal investment website.
"Over time, credit unions have become fiercely competitive," the article said. "Their not-for-profit status allows them to operate without a goal of profitability."
Perhaps, most importantly, "borrowers win" at credit unions the article said, citing SNL Financial and National Credit Union Administration data that shows the average credit union prices its credit cards, car loans, and mortgages at rates lower than the banks.
"Car buyers are perhaps the biggest winner at credit unions, which price car loans at nearly half the rate of for-profit banks," the article noted.
Credit unions are also a better place to save, according to The Motley Fool. The average credit union offers certificate of deposits (CDs), money market and savings rates well above the national average from banks. On longer-term savings products, such as five-year CDs, credit unions can pay as much as 50% more than banks, the article said.
Credit unions also charge fewer fees than banks. "Credit unions, formed for the purpose of helping low- and middle-income Americans create savings, have largely avoided monthly account fees for their customers," the article said.
"If, like many people, you made a financial New Year's resolution, you might just want to start by picking a new place to store your savings and borrow your money," the piece concluded. "The average credit union has a huge advantage on your average bank. This year is the perfect year to make the switch."