GoBankingRates Study Credits TwinStar with Nation’s Best Savings Interest Rate
January 4, 2013
January 4, 2012
According to a study of savings accounts at more than 4,000 financial institutions, TwinStar Credit Union offered the highest savings account interest rate in the nation in 2012 as part of its Planned Savings account, a program that encourages members to develop good savings habits.
The Planned Savings account incentivizes the practice of saving and gives members control of how and when they will reach those incentives. The accounts do include certain deposit limitations, said Matt Devlin, TwinStar’s vice president of marketing and strategy, but “the high dividend is directed to a segment that needs it.”
“You choose your savings goal and deadline for meeting it,” states TwinStar’s website. “We’ll tell you how much you need to put away each month to reach your goal. Stick to the plan and you’ll earn dividends at a preferred rate.”
The study, conducted by GoBankingRates.com, showed that eight of the top 10 U.S. savings account rates were offered by credit unions and listed the national average savings account rate at 0.21 percent annual percentage yield (APY).
“Differences in structure are key,” said Mike Schenk, CUNA’s vice president of economics and statistics. “Credit unions are owned by their member-depositors so credit union profits go directly back to those members in the form of higher deposit yields, lower loan interest rates, and fewer and lower fees.”
“Banks, in contrast,” he added, “are owned by shareholders who demand a market rate of return on their stock investments. In 2011 U.S. banking institutions paid $78 billion in cash dividends to these stockholders, according to the Federal Deposit Insurance Corp.–monies that could have been used to provide consumers with a better deal if banks were structured like credit unions.”
Other credit unions in the Top 10 were:
- Houston (Texas) Police CU with 1.51 percent;
- Corps of Engineers CU, Fort Worth, Texas, 1.26 percent;
- People’s First FCU, Tarrant, Ala., 1.25 percent;
- Delaware Alliance CU, New Castle, Del., 1.05 percent.
- Telhio CU, Hillard, Ohio, 1.01 percent;
- State Farm FCU, Bakersfield, Calif., 1.01 percent; and
- Puerto Rico CU, San Juan, P.R., 1.01 percent.
The only two banks on the list were Salem (Mass.) Five Direct, with 1.25 percent, and Biscayne Bank, Miami, Fla., with, 1 percent.
Credit unions also dominated the lists of top U.S. certificate of deposit (CD) rates in the nation. In three categories based on term length, credit unions made up 24 of the 30 institutions ranked on the three top-10 lists.
Questions or Concerns? Contact Matt Halvorson, Anthem Editor: email@example.com.