Credit unions across the country have been making a name for themselves in the financial institute industry in recent years. The Credit Union National Association’s Economics and Statistics Department (CUNA) recently announced that due to more competitive rates and lower fees, 93.3 million members saved $6 billion a year. Many states have been reporting savings of millions of dollars for their credit union members since the recession in 2007.
Credit unions have demonstrated their role in the community by helping build stronger local business, and supporting the financial well-being of families. Their presence in the financial industry puts pressure on banks meaning more competitive rates and fees, and consequently, more savings for all consumers. Because credit unions focus on providing members with the best financial services and deals, if competitive rates are better elsewhere, they gladly point us in that direction.
Made to Save
Programs designed to save consumers money, like the salary advance loan and mortgage recapture initiative, also give credence to the credit union’s effort to save their members money. These offers, which seem more like savings programs, promote healthy saving habits in consumers. For example, when a member takes out a “payday” loan of $500, the credit union requires a savings of 5% of that amount. When the goal is reached, the loan rate is lowered and the savings component is increased.
Money Saving for Small Business
Several credit unions across the country have increased lending power to small businesses that were turned away from larger financial institutes. Already, states are showing growth in the small business sector, like Florida, which reported a nearly 8% increase in 2012. The industry is pushing lawmakers to increase the percent cap of credit union assets. By pumping more money for small business loans into the economy, job opportunities are expected to increase, and not at the expense of the taxpayer.
If you would like more information about how credit unions work and how they can benefit you, please contact our Valley Federal Credit Union main branch at 956.456.3108. If you are interested in joining us, visit any of our locations, and we can get you started on a brighter financial future.