Credit Unions: Helping Members Earn More on Savings
Smart consumers look for the best ways to save money and earn the highest interest rates for their hard-earned bucks. And that's where NuVista Federal Credit Union can help.
"By shifting funds from a bank to an equivalent account at a credit union, consumers can earn billions of dollars more in annual interest," says Daniel A. Mica, president and chief executive officer of Credit Union National Association (CUNA) in Madison, Wis. "If all consumers had access to a credit union," Mica says, "the potential increase in interest earning would exceed $20 billion a year."
The Consumer Federation of America (CFA) in Washington, D.C., and CUNA analyzed data, collected by the Bank Rate Monitor, on the rates banks and credit unions pay on interest-bearing share draft/checking accounts, money market accounts, and six-month, one-year, and five-year share certificates/certificates of deposit (CDs) for January and February 1999.
The analysis reveals that, on average, credit unions pay about one percentage point more than banks on interest checking and CDs, and at least one and one-half percentage points more on money market accounts.
The interest rate difference between banks and credit unions adds up over time, leading to considerable savings for you and your family. Consider that the average credit union member with share certificates has $13,000 in the certificates and earns about $100 more per year than he or she would with a bank CD.
CFA says you can earn more on savings by taking these actions:
- Shift funds from banks to credit unions.
- Shift funds from money market accounts and other traditional savings accounts into share certificates/CDs.
NuVista Federal Credit Union is committed to helping you earn more on savings. Call our staff at (970) 249-8813 for answers to all your savings questions.
Copyright 2002 Credit Union National Association Inc. Information subject to change without notice.