CUs trounce banks on rates: WalletHub
WASHINGTON (10/8/14)--Credit unions are 72% cheaper than national banks, offer 105% more features tied to their products and provide 567% higher interest rates, according to recent research by the personal finance website WalletHub.com (Oct. 6).
WalletHub's findings, which have been covered by several personal finance websites, come from a recent analysis of fees, features and rates associated with more than 2,000 checking accounts, savings accounts, money market accounts and certificates of deposit (CD) from financial institutions "both big and small, both online and brick-and mortar, and both shareholder- and member-owned."
Even when it comes to small banks, those member-owned credit unions still take the cake.
Credit unions are 48% cheaper than small banks, offer 46% more features and provide 699% higher interest rates, WalletHub found.
Further, national banks levy the highest fees and offer the fewest number of features with their checking accounts, while credit unions produce the highest interest rates on the market for interest-bearing checking accounts, savings accounts and CDs.
Specifically for checking accounts, credit unions charge 70% less than banks and provide 67% more features. Banks performed the worst in these categories.
Additionally, in the third quarter, credit unions charged $21.76 on average in fees on checking accounts compared with $73.61 at national banks, $63.60 at regional banks and $42.23 at small banks (MarketWatch Oct. 6).
Interest rates at credit unions also come in nearly 10 times higher, or 989%, than those at regional banks, WalletHub reported.
Savings rates also favor credit unions, with the member-owned institutions offering six times more interest than national banks.
For the full "Banking Landscape Report" from WalletHub, use the resource link below.