google-site-verification: google5ae98130f18ad244.html

Tuesday, March 19, 2019
   
Text Size

Banking & Finance

State Lending Index Shows Credit Unions Continue to Offer Consumers Savings

Category: Banking & Finance

The latest index of loan activity and rate comparisons from Georgia Credit Union Affiliates (GCUA) shows Georgia's credit unions have continued through the first half of 2009 to offer consumers savings through lower rates on auto loans and credit cards, and fewer and lower transactional fees, according to said Michael Mercer, president and CEO of GCUA.
Released semiannually, the Georgia Credit Union Benefits Index serves as a barometer to help Georgia consumers make more informed personal financial decisions in an uncertain financial environment, he said.
"In total, the index shows credit unions saved Georgians more than $138 million on an annual basis from lower interest rates, higher rates on savings and lower fees. Credit unions are clearly returning 'profits' to their members since they don't have to pass them on to third-party shareholders,” according to Mercer.
According to the GCUA index, credit unions continue to offer lower rates than banking institutions on loans for key purchases like new and used vehicles; on average, credit union rates were 1.6 percent lower than bank rates for new vehicles, and more than 2 percent lower for used vehicles.
Many credit unions in the state have been able to offer further vehicle savings to members by participating in the nationwide credit union "Invest in America" program, which offers cash incentives from $500 to $1,000 for purchasing qualified American-made vehicles.
The index uses credit union data and banking institution statistics from Datatrac, the nation's leading rate survey firm, to track credit union lending and compares savings, loan and fee rates between state credit unions and banking institutions. The current index is based on data collected during June 2009. Key findings for loan product rate comparisons include:
• Credit union rates on auto loans continued to be lower than banking institutions. The average rate for a 60-month new car loan was 5.54 percent for credit unions in Georgia, compared to 7.14 percent for banking institutions. The average rate for a 48-month used car loan was 5.71 for credit unions, compared to 7.74 for banking institutions.
• The average rate for credit cards was 11.77 percent for credit unions in Georgia, compared to 12.07 percent for banking institutions.
• At 11.33 percent, banking institutions offered slightly lower rates on personal, or "unsecured," loans, compared to 11.54 percent for credit unions.
• Credit unions in Georgia offered slightly higher average rates for 15- and 30-year mortgages, at 5.71 and 6.21 percent, respectively, compared to 5.36 and 5.85 percent for banking institutions.
• The average rate for home equity lines of credit and second mortgages was 4.83 percent for credit unions in Georgia, compared to 5.31 percent for banking institutions.
Savings data compared to banking institutions showed rates favorable to credit union members in Georgia. According to the index:
• The average rate paid on a savings account with a $1,000 balance was 0.64 percent for credit unions, compared to 0.47 percent for banking institutions.
• The average rate paid on a share draft checking account with a $5,000 balance was 0.47 percent at a credit union, compared to 0.40 percent for banking institutions.
• The average rate paid on money market accounts was 1.95 percent for credit unions, compared to 1.32 percent for banking institutions.
• The average rate paid on an IRA retirement accounts was 2.24 percent for credit unions, compared to 1.76 percent for banking institutions.

Overall Rating (0)

0 out of 5 stars

Leave your comments

Post comment as a guest

0 / 300 Character restriction
Your text should be in between 10-300 characters
Your comments are subjected to administrator's moderation.
terms and condition.
    • No comments found
    CLICK to SUBSCRIBE and Support Great Journalism!

    Follow Us!

    TwitterFacebook
    MY ACCOUNT
    CONTACT
    SOCIAL
    MORE
    ADVERTISE
    Coastal Empire News
    Headquarters: 35 Barnard St., Suite 300, Savannah, GA. 31401.
    Tel: 912-388-4692 | Hours: 8:30 a.m. to 5:00 p.m.