Credit unions gaining ground on banks

[cal04]

Shopping for a new loan, or a savings or checking account? You have more options than you think. Banks are the main place people park their money or get their loans, but credit unions are growing in popularity as consumers thumb their noses at credit unions' big brother in the world of financial institutions.

According to a March 2012 survey of 5,000 consumers conducted by Pleasanton, Calif., market research firm Javelin Strategy & Research, 11 percent of respondents indicated they would switch their main financial institution during the year. For the first quarter of 2012, membership increased by 667,000, reports the National Association of Federal Credit Unions, an Arlington, Va., trade association.

Although credit unions are an alternative to banks, a decision to switch depends on what you want from your financial institution. For some consumers, low rates on loans and higher rates on savings accounts are all that matters. For others, it's all about convenience or accessibility.

"Banks may offer a better opportunity if you need a more sophisticated lending product or investment product," said Gene Kirsch, senior financial analyst at Weiss Ratings, a ratings firm in Jupiter, Fla. "For everything else, you're best to shop around. Credit unions are very competitive."

http://lifeinc.today.com/_news/2012/11/11/14947860-credit-unions-gaining-ground-on-banks?lite

[kimbutgar]

1. I have an account at a credit union and a major bank

I get a much better rate of interest on my savings at the credit union and the interest rate at the major bank is a joke. I get the majority of my savings in the credit union. I keep the major bank account because I'm too lazy to change some of my auto payments.

[rhett o rick]

2. If Credit Unions get too uppity, the Banks will have their Congress smack them down. nm