NCUA Media Release

Credit Unions Offer Favorable Rates

Data Shows Credit Unions On Average Offer Better Rates

 

Alexandria, Va., January 27, 2010 – The National Credit Union Administration today posted the latest results from DATATRAC, Inc., a company that tracks rates charged and paid by credit unions, banks, and credit unions that converted to or merged with banks.

At year-end 2009, credit unions, on average, posted more favorable rates for consumers than banks in 21 of the 23 loan and savings categories. Credit unions provided significantly lower rates on all consumer loan types and provided higher yields on all savings products. Credit unions also posted lower average adjustable rate mortgage rates, while in the two fixed rate mortgage products (15 and 30 year) bank averages were minimally lower (2 – 3 basis points).

Credit unions also posted better results in 22 of 23 categories than the 28 banks that converted from credit unions, merged with credit unions, or merged with former credit unions. Average rates at these converted institutions generally lie between credit union averages and the all-bank averages. The converted institution rates on fixed rate mortgages, however, were higher than both credit union and all-bank averages.

DATATRAC, Inc. results are available online at
http://www.ncua.gov/DataServices/BankRateData/index.aspx

The National Credit Union Administration is the independent federal agency that charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates and manages the National Credit Union Share Insurance Fund, insuring the savings of over 90 million account holders in all federal credit unions and the majority of state-chartered credit unions.