www.CUNA.org/newsnow (01/13/2010) It's time to say goodbye to banks and join a credit union, according to CBS Moneywatch.com, which touted credit union's lower fees, better rates and the Credit Union National Association's (CUNA) credit union locator.
Steve Brobeck, executive director of the Consumer Federation of America, told CBS that "credit unions charge lower fees and loan rates than banks and pay higher savings yields." The article said credit unions pay 0.3% more on share certificates than banks do on certificates of deposit. CBS noted CUNA's Ratedex site, and compared credit card and savings rates at credit unions and banks.
Credit unions can often return more on savings and charge less on loans because "the credit union channels any excess funds back to its members," Mark Wolff, CUNA senior vice president of public relations, told CBS.
Also this week on CNN, financial guru Suze Orman encouraged consumers to obtain credit cards from credit unions. Orman told CNN's Campbell Brown that she is upset because banks continue to reap profits while charging consumers high fees and interest rates, and advised consumers to find a good credit union credit card.
"Federally chartered credit unions can't charge you more than 18% [in interest]," Orman said. "Credit unions care about their members; banks care about their shareholders. Credit unions are going to take better care of you."