Credit union members benefit from higher levels of service and participation in the governance of their financial cooperatives. But members also benefit financially to the tune of about $10.2 billion a year—that’s $96 a year per member or $183 a year per member household, according to data from the Credit Union National Association’s economics and statistics department.
That’s the sum of the additional fees, loan interest and lower savings return that credit union members would have paid and earned had they conducted all their business with banks instead of credit unions during the twelve months ending December 2016. Those numbers break down this way:
· Lower fees = $1.3 billion
· Lower interest paid on loans = $6.9 billion
· Higher earnings on shares and deposits = $2 billion
While bankers complain that credit unions don’t pay federal income taxes, they conveniently ignore the fact that credit union members pay income taxes on the additional dividends that they earn on their higher-earning credit union savings accounts, according to CUNA Chief Economist Bill Hampel.
More than 105 million Americans are members of a credit union. But Hampel also points out that even those that don’t belong to a credit union benefit from the existence of credit unions. “Attractive pricing from credit unions pressures other financial institutions to provide attractive rates and services.”
If you still need convincing, here are some other great perks to credit union membership with Liberty Savings.
- Credit unions are focused on people, not profits. Credit unions operate by a “people helping people” philosophy that is hard to find at many other financial institutions.
- Credit unions exist to serve people–including people of modest means.
- Financial education is available to all members. Credit unions help members become better-educated consumers of financial services.
- As not-for-profit institutions, credit unions offer better rates on credit cards–up to three percentage points lower than the average bank card rate.
- Credit unions are available in places where banks typically aren’t, such as community development neighborhoods.
- As a member of a credit union, no matter how much money you have on deposit, you have an equal voice in how your credit union is run.
- Superior service, convenience, and technology. Credit union members can access their accounts anywhere in the world through telephone, online banking and shared branch banking.
Looking for more details about credit union membership? Just ask us. Call 201-659-3900 or check out our website for information about becoming a member.