Beyond Banking: The Unmatched Benefits of Credit Union Membership
Published: November 3, 2023
According to CUNA, credit unions have delivered a staggering $20,273,178,111 in direct financial benefits to their 135,877,914 members. Breaking it down, that's an average of $149 per member or a substantial $313 per member household. But what lies beneath these figures?
Crunching the Numbers: How Credit Union Benefits Add Up
The estimated total benefits of credit union membership aren't random; they stem from a careful analysis of credit union versus bank pricing. CUNA compares average credit union savings account yields, loan interest rates, and fees with their bank counterparts. The resulting interest rate differences are then applied to average credit union loan and savings balances. Even fees are not overlooked—differences are carefully weighted and applied to credit union non-interest income, unveiling the full spectrum of benefits arising from fees.
Every Member Counts: The Average vs. the Exceptional
While per-member and per-household benefits are indeed substantial averages, it's important to note that these numbers are distributed across all members, including those with minimal financial engagement. However, consider this scenario: If you were to finance a $25,000 car for 60 months with a credit union, you could save approximately $83 per year in interest compared to a traditional bank. Over five years, this results in total savings of about $1,000.
Loyalty Rewarded: Going Beyond Average
But there's more to the story. Loyal members, those who weave credit unions into the fabric of their financial lives, often experience total financial benefits that far surpass the average. It's a testament to the enduring relationship between credit unions and their members—a relationship built on trust, engagement, and shared financial success.
Credit Unions: The Champions of Member Benefits
Credit unions shine in providing member benefits across a spectrum of loan and saving products. From car loans to mortgages, credit unions consistently offer lower average loan rates, setting them apart in the financial landscape.
More Than Numbers: The Heart of Credit Unions
As not-for-profit, member-owned financial institutions, credit unions stand out as ideal financial partners for consumers, actively contributing to the well-being of the communities they serve. Statistical evidence reveals that, on average, credit union members demonstrate greater financial resilience compared to their counterparts. It's not just about the dollars; it's about the positive impact credit unions have on the financial health of their members.
The Credit Union National Association (CUNA) estimates that credit unions provided $20,273,178,111 in direct financial benefits to the nation’s 135,877,914 members during the twelve months ending June 2023. Assumes 2.1 credit union members per household. Source: National Credit Union Member Benefits.