NEW YORK (1/4/13)--Credit unions have the best savings account interest rates in the nation for 2012, according to a study of savings accounts at more than 4,000 banks and credit unions. Eight of the Top 10 U.S. Savings Account Rates were held by credit unions. That's no surprise to the Credit Union National Association (CUNA).
"Differences in structure are key," said Mike Schenk, CUNA's vice president of economics and statistics. "Credit unions are owned by their member-depositors so credit union profits go directly back to those members in the form of higher deposit yields, lower loan interest rates, and fewer and lower fees," he told News Now
"Banks, in contrast," he added, "are owned by shareholders who demand a market rate of return on their stock investments. In 2011 U.S. banking institutions paid $78 billion in cash dividends to these stockholders, according to the Federal Deposit Insurance Corp.--monies that could have been used to provide consumers with a better deal if banks were structured like credit unions."
The research was conducted by GoBankingRates.com. It noted the national average savings account rate in the U.S. is 0.21% annual percentage yield.
TwinStar CU in Olympia, Wash., had the No. 1 spot in the study with 1.6%.
Other credit unions in the Top 10 were:
- Houston (Texas) Police CU with 1.51%;
- Corps of Engineers CU, Fort Worth, Texas, 1.26%;
- People's First FCU, Tarrant, Ala., 1.25%;
- Delaware Alliance CU, New Castle, Del., 1.05%.
- Telhio CU, Hillard, Ohio, 1.01%;
- State Farm FCU, Bakersfield, Calif., 1.01%; and
- Puerto Rico CU, San Juan, P.R., 1.01%.
The only two banks on the list were Salem (Mass.) Five Direct, with 1.25%, and Biscayne Bank, Miami, Fla., with, 1%.
Credit unions also dominated in the reviews of top U.S. certificate of deposit (CD) rates in the nation in three categories: a six-month term, a one-year term, and a two-year term. Metropolitan Service CU, Philadelphia, topped all three lists with 1.47% for the six-month CD, 1.86% for the one-year CD, and 2.32% for the two-year CD.
Seven credit unions were listed in the top 10 for the six-month CD; the eight top spots for the one-year term CD were held by credit unions, and nine spots for the two-year CD were claimed by credit unions.
For the full report and rankings, use the resource link.