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DepositAccounts: Banks 'Don't Hold a Candle' to CU Product Offerings
Friday, January 29, 2016 6:45 AM

A recent report from consumer finance website added further evidence to the fact that credit unions continue to provide better interest rates than banks.

“The results of our study showed a simple, almost universal trend across the four products: credit unions offer better rates than banks at almost every level on almost every product,” the report said. "From one- and five-year certificates of deposit, to personal checking, to savings accounts, “every look at the numbers revealed a remarkably similar pattern.”

When comparing financial institutions with asset sizes of $5 billion or more, credit unions trounced banks.

For each type of account, large credit unions offered vastly higher interest rates, even rising to a disparity of up to 184 percent on savings accounts.

“Within this institution size, banks simply do not hold a candle to the product offerings of the credit unions on any of the four product categories,” the article said.

That difference was even more pronounced when separating out and comparing the five largest credit unions and banks.

“While numerous considerations factor in the bank vs. credit union discussion, one component that is almost uniformly appreciated among consumers is a higher interest rate on their deposited funds,” the report said. “As the data analysis shows, in this key consideration, credit unions clearly have the upper hand.”