Comparing Banks & Credit Unions

COMPARING BANKS &) CREDIT UNIONS Did You Know? MEDIAN CREDIT CARD INTEREST RATE The median BANK credit union credit card interest rate is 20% less than the median bank CREDIT UNION credit card rate There were 2012 667,000 new credit union members in the 1st quarter of 2012 Mission and Purpose CREDIT UNIONS BANKS Not-for-profit For profit Community- oriented Business-minded Banks often controlled by Local credit unions run non-local individuals by community members who have no interest or involvement in the community Owned by members Owned by private investors or entities All decisions voted Decisions made to upon and made to benefit members maximize bank's profits Multiple taxpayer-funded bailouts for U.S. banks in No U.S. credit union has ever relied on taxpayer recent decades funds for a bailout Savings and Checking Accounts CREDIT UNIONS BANKS Deposits buy shares of Deposits lent to bank and the credit union invested to make profit for the bank Lower average Higher average checking fees checking fees Higher average savings Lower average savings account rates account rates $4 $$$ Negligible minimum Higher minimum balances balances Insured by Insured by NCUA FDIC Credit Cards CREDIT UNIONS BANKS Lower rates Higher rates Often have no annual fee Typically have annual fee -$20 -$39 Median late and Median late and over-limit fee is $20 over-limit fee is $39 Many do not charge Most charge balance balance transfer fee transfer fee Buying a Home CREDIT UNIONS BANKS Often offer lower Often offer higher interest rates interest rates Often offer lower Typically have high closing costs closing costs ??? Quicker closings More complicated closings INFOGRAPHIC PROVIDED BY JEANNE D'ARC CREDIT UNION www.creditunionlowell.com Sources http://www.bankrate.com/finance/credit cards/should you get a-credit-union-credit-card-1.aspx http://www.bankrate.com/finance/credit-unions/switch-from-bark-to-credit-union.aspislide=1 http://money.howstuffworks.com/personal-finance/banking/difference-between-bank-and-credit-union2htm http://en.wikipedia.org/wiki/National Credit Union_Share_Insurance Fund |0000 0000