Monday, June 13, 2011 12:23:00 PM
Credit unions still "outdo their bank counterparts, and it's easier to get in" according to a recent Wall Street Journal article titled "Where the Banking Deals Are". The story, which points out deals consumers can find at credit unions, appeared in the weekend Wall Street Journal on Saturday and was posted on WSJ online on Friday.
The nonprofit financial institutions owned and controlled by members are increasingly opening their doors to a broader group of people, the article points out, which is good news for consumers. "By loosening membership requirements, credit unions create greater economies of scale, allowing for more profits to be returned to members," Patrick Keefe, Vice President of Communications at CUNA, told the WSJ. The article points readers to ASmarterChoice.org to find a local credit union.
Consumers are gravitating towards credit unions because they typically offer better rates than banks in a number of areas, including auto and personal loans. Members of credit unions also pay significantly less in fees for ATM transactions and insufficient funds.
Also, according to the article, "part of credit unions' competitive advantage stems from their not-for-profit structure, which allows them to return profits to members in the form of more-competitive interest rates and better products."
Credit unions have long been considered less convenient than banks because of their small number of branches and ATMs. However, "some credit unions have since banded together to form ATM networks, and technologies like mobile banking have made them accessible to more people."
The article is available in its entirety here.