CUs good option for young savers: Schenk to Reuters

April 2, 2015
MADISON, Wis. (4/3/15)--Credit unions are a great option for young savers, Mike Schenk, CUNA vice president of economics and statistics, recently told Reuters for an article on children and saving.

Credit unions offer local convenience, the article said. Schenk went on to explain that credit unions' cooperative structure makes them more accountable to their members, and focused on the community.

"The difference between credit unions and banks is that credit unions are not-for-profit and owned by depositors," Schenk said.

Another consideration is fees, the article noted. Because credit unions are not-for-profit and return earnings to their members, they typically charge fewer and lower fees than banks while offering more favorable interest rates--another reason credit unions are a good deal for young savers.

April is National Credit Union Youth Month, which provides credit unions an opportunity to connect and convey to their members the importance of financial education at a young age. The month's theme, "Wild About Saving," was chosen from ideas submitted by credit union staff nationwide.

CUNA will also sponsor its annual National Youth Saving Challenge during April. The contest will reward 25 savers with $100 cash prizes. Last year, 8,844 new accounts were opened, and 94,466 young members deposited more than $20.5 million into savings accounts during the month-long challenge.