Story Dares to Ask: Are Credit Unions Better Than Banks?
June 4, 2010
June 15, 2010
A recent story in the Wall Street Journal received some big time national play for stating what anyone familiar with credit unions already knew: people just like credit unions.
In a piece headlined Credit Unions: A Better Bet Than Banks?, reporter Jane Kim talks to one satisfied member and several knowledgeable insiders to get a good look at the reasons why, yes, credit unions are better than banks.
According to Samantha Johnson of Madison, Wis., who left her bank of 12 years for a local credit union, it was the lower fees and the credit union’s willingness to spend time with her to set up a financial plan that convinced her to switch.
Additionally, the story says that members can generally find higher rates on certificates of deposit, checking and savings accounts at credit unions than at traditional banks. And, credit unions are more likely to offer free checking at a time when financial institutions face legislation that is expected to cut into overdraft fees, a profitable source of revenue. Credit unions are also paying high yields on so-called reward checking accounts and are dropping rates for loan products aimed at younger borrowers, according to the piece.
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